Bitcoin price has shown a positive trend, recovering from the $27,200 support level against the US Dollar. The digital currency is currently trading above $27,500 and the 55 simple moving average (4 hours). A major contracting triangle with resistance near $28,250 was broken on the 4-hours chart of the BTC/USD pair (data feed from Coinbase). If the price manages to clear the $28,850 resistance zone, it could trigger a fresh increase.
Bitcoin Price Rally
Bitcoin recently experienced a downward trend, falling below the $28,000 support level. The digital currency dipped further below the $27,800 and $27,500 support levels, reaching a low of $27,227 before starting to climb again.
The price managed to break above the $27,850 resistance zone and gained momentum when it surpassed the $28,000 resistance level and the 50% Fibonacci retracement level of the downward move from the $28,826 swing high to the $27,227 low.
In addition, a significant contracting triangle with resistance near $28,250 on the 4-hours chart of the BTC/USD pair was breached. The pair is now trading above $27,000 and the 55 simple moving average (4 hours), as well as the 76.4% Fibonacci retracement level of the downward move from the $28,826 swing high to the $27,227 low.
The immediate resistance on the upside is near the $28,850 level. The next critical resistance could be around the $29,200 zone, with the primary resistance at $30,000.
A decisive move above the $30,000 level may propel the price towards $32,000, and further gains could push the price toward the $33,200 level. Beyond that, the price might rise to the $34,500 zone.
On the other hand, if the price fails to break the upside, it might initiate a fresh decline below the $28,400 level. The first significant support is near $28,000. The subsequent key support is near the $27,220 level, below which the price might accelerate lower. In that scenario, the price could drop towards the $25,500 level.
Bitcoin Price Outlook
Examining the chart, Bitcoin’s price is trading above $28,000 and the 55 simple moving average (4 hours). Overall, the price could trigger a fresh increase if it manages to clear the $28,850 resistance zone.
4 hours MACD – The MACD is currently gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is now above the 50 level.
Key Support Levels – $28,400 and $27,220.
Key Resistance Levels – $28,850, $30,000, and $32,000.