Bitcoin price is correcting sharply, but this support could lead to another rise

Bitcoin price even rose above the $26,000 resistance. BTC corrected lower, but the bulls are active above the $24,000 support zone.

• Bitcoin started a strong rally above the $24,500 resistance zone.
• The price is trading above $24,000 and the 100 hourly simple moving average.
• An important bullish trend line is forming with support near $24,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another rally if it holds above the $24,000 support zone.

Bitcoin price rejects $26.5K

Bitcoin price started a strong rally above the $24,000 resistance zone. BTC even surpassed the $25,000 resistance to move further into a positive zone.

Finally, the price rose above the $26,000 and $26,200 resistance levels. A high was formed near $26,526 before there was a sharp downside correction. The price fell sharply below the $26,000 and $25,500 levels. It was trading near the $24,000 support zone.

A low is forming near $24,051 and the price is now rising. Bitcoin price is trading above $24,000 and the 100 hourly simple moving average. An important bullish trend line is also forming with support near $24,750 on the hourly chart of the BTC/USD pair.

An immediate resistance is near the $25,300 level. It is near the 50% Fib retracement level of the recent decline from the $26,526 swing high to the $24,051 low.

Source: BTCUSD on TradingView.com

The next major resistance is near the $25,600 zone. It is near the 61.8% Fib retracement level of the recent decline from the $26,526 swing high to $24,051 low. A close above the $25,600 resistance could initiate another rally towards the $26,000 resistance. The next key resistance is near the $26,500 zone, above which the price could gain bullish momentum and test $27,500.

Dips Limited in BTC?

If the bitcoin price fails to clear the $25,300 resistance, it could start another decline. An immediate support on the downside is near the $24,750 zone and the trend line.

The next major support is near the $24,000 zone, below which the price gains bearish momentum. The next major support is near the $23,200 level. Any further losses could send the price towards the $22,500 level and the 100 hourly simple moving average.

Technical indicators:

Hourly MACD – MACD is now losing momentum in the bearish zone.

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

Major support levels – $24,750, followed by $24,000.

Major resistance levels – $25,300, $25,600 and $26,200.