Bitcoin’s price initiated an upward correction starting from the $26,550 region. BTC is currently ascending and encountering formidable resistance at approximately the $27,300 and $27,500 levels.
Bitcoin has successfully regained ground above the $27,000 resistance threshold.
The price is trading above $27,000 and is above the 100-hourly Simple Moving Average.
Furthermore, there was a breakthrough of a significant bearish trend line with resistance around $27,000, as illustrated on the BTC/USD pair’s hourly chart (data sourced from Kraken).
The pair displays indications of a recovery, but it may encounter challenges in the vicinity of $27,300 and $27,500.
Bitcoin Price Seeks to Embark on a New Uptrend
Bitcoin’s price discovered support in the vicinity of the $26,550 mark. Despite attempts by BTC bears to breach the $26,550 level, their efforts proved unsuccessful. Consequently, the price initiated an upward correction, surmounting the $26,800 resistance.
Moreover, the price surged past the 23.6% Fibonacci retracement level of the previous decline, extending from the $28,285 peak to the $26,550 low. Notably, a significant bearish trend line was broken with resistance at approximately $27,000 on the BTC/USD pair’s hourly chart.
At present, Bitcoin is trading above $27,000 and is positioned above the 100-hourly Simple Moving Average. Nevertheless, it appears that the price is contending with a robust resistance barrier around the $27,300 threshold.
The subsequent critical resistance may lie near $27,500 or the 61.8% Fibonacci retracement level of the preceding downturn, extending from the $28,285 peak to the $26,550 low. A clear breakthrough beyond the $27,500 and $27,650 resistance levels could potentially set the stage for a more substantial upswing.
![](https://sollcrypto.com/wp-content/uploads/2023/10/Screen-Shot-2023-10-16-at-10.05.30-AM.png)
The following pivotal resistance level to watch for is at $28,000. An effective breach of this $28,000 resistance could initiate a consistent upswing towards the $28,500 mark. Further advances could potentially propel BTC towards the $29,200 level.
Could BTC Be Headed for Another Downturn?
In the event that Bitcoin is unable to stage a recovery beyond the $27,500 resistance, there may be a potential descent. Immediate support on the downside can be found near the $27,000 level and within the zone marked by the trend line.
The subsequent key support level rests at approximately $26,900, coinciding with the 100-hourly Simple Moving Average. Should there be a downside breach and a subsequent close below the $26,900 support, it could lead to further downward movement, with the subsequent support level lying at $26,550.
Technical Indicators:
- Hourly MACD: The MACD is currently showing a slowdown in bullish momentum.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD is currently positioned above the 50 level.
Key Support Levels: $27,000, followed by $26,900.
Key Resistance Levels: $27,300, $27,500, and $27,650.