Bitcoin Price Starts Correction Post Rally, Why Dips Could Be Attractive

2023-08-30 03:33:14

Bitcoin price rallied above $26,500 and $27,000. BTC tested the $28,000 resistance zone and is currently correcting lower toward $27,000.

Bitcoin jumped and cleared the $26,500 resistance zone.
The price is trading above $26,500 and the 100 hourly Simple moving average.
There was a break above a key bearish trend line with resistance near $26,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is correcting gains, but it might find bids near $27,000 or $26,700.

Bitcoin Price Regains Strength

Bitcoin price started a decent increase following news that a US court ruled in favor of Grayscale against the SEC, opening the doors for ETF. BTC gained pace and was able to clear the $26,500 resistance zone.

There was a steady increase, and the price even broke the $27,500 resistance zone. Finally, it tested the $28,000 resistance zone. A high is formed near $28,150 and the price is now correcting gains. There was a minor decline below the $27,800 level.

The price traded below the 23.6% Fib retracement level of the upward move from the $25,927 swing low to the $28,150 high. However, Bitcoin is still trading above $26,500 and the 100 hourly Simple moving average.

Source: BTCUSD on TradingView.com

If there is a fresh increase, immediate resistance is near the $27,650 level. The first major resistance is near the $28,000 level. A clear move above the $28,000 level might send the price toward $28,500. The next major resistance is near $29,200, above which there could be a sustained increase. In the stated case, the price could test the $30,000 level. Any more gains might set the pace for a larger increase toward $31,200.

Are Dips Limited In BTC?

If Bitcoin fails to clear the $28,000 resistance, it could continue to move down. Immediate support on the downside is near the $27,000 level.

The next major support is near the $26,700 level or the 61.8% Fib retracement level of the upward move from the $25,927 swing low to the $28,150 high. A downside break below the $26,700 level might push the price again into a bearish zone. In the stated case, the price could drop toward $26,000.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $27,000, followed by $26,700.

Major Resistance Levels – $28,000, $28,500, and $29,200.

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