Daily Price Outlook
* Bitcoin breaks above the $27,000 barrier, but needs to surpass $27,800 for a substantial upward move.
* Price correction follows a low near $25,851, with a bullish trend line break near $27,000 on the BTC/USD hourly chart.
* Resistance levels are seen at $27,400 and $27,800, while support lies at $27,000 and the 100 hourly Simple Moving Average.
The price of bitcoin is showing signs of life as it breaks beyond the $27,000 barrier. Bitcoin, however, has to break over the $27,800 resistance level before any substantial upward movement can occur. Before the bulls came in, the price had fallen below $27,000 and had gotten as low as $26,200.
The price has formed a low around $25,851 and is currently correcting higher. A key bearish trend line near $27,000 on the hourly chart of BTC/USD has been broken, and the currency pair is now trading above both $26,500 and that line.
Bitcoin's current price is above the 50% Fibonacci retracement level of the fall from the $28,334 swing high to the $25,851 low. Price is trading above the 100 hourly Simple Moving Average and $26,500.
The 61.8% Fibonacci retracement level of the recent decline ($27,400) is providing initial resistance. Close to $27,800 is the next major barrier to growth.
If the price is able to close above $27,800, it may begin a solid uptrend. The next significant resistance level is about $28,000, above which the price might rise to $28,500.
But if Bitcoin can't go through $27,400, we might see another drop. On the downside, $27,000 and the 100 hourly Simple Moving Average provide near-term support.
If prices drop below the $26,500 area, the market may experience further weakness. In that case, it's possible that the price will fall back to the $26,000 level. Bitcoin's next significant support is at $25,000, so if prices keep falling, that's where it might end up.
BTC/USD - Trade Idea
Entry Price – Buy Above $27300
Stop Loss – $26750
Take Profit – $28300
Risk to Reward – 1 : 1.8
Profit & Loss Per Standard Lot = +$1000/ -$550
Profit & Loss Per Micro Lot = +$100/ -$55
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