The Bitcoin price finds itself confined within a narrow range just above the $25,900 support level. A promising scenario for BTC’s recovery might emerge if there’s a decisive close above the $26,200 mark, followed by a breach of $26,500.
Presently, Bitcoin is encountering challenges in surmounting the resistance at $26,500.
The price remains below both $26,200 and the 100-hourly Simple Moving Average.
On the hourly chart of the BTC/USD pair (data feed from Kraken), a bearish trend line is forming, connecting points of resistance around $26,070.
For the pair to potentially initiate a renewed upward movement, it would need to surpass levels at $26,150 and $26,200.
Bitcoin’s price is poised for a new upswing.
The Bitcoin price attempted to establish itself above the resistance level at $26,500. However, it was unsuccessful in maintaining its position above this level, resulting in a fresh downward trend.
Subsequently, there was a dip below the pivotal point at $26,250. The price decline extended below the 50% Fibonacci retracement level of the upward movement from the $25,360 low to the $26,780 high. Presently, it appears that the price is confined to a narrow range just above the support area at $25,900. The current Bitcoin trading situation involves being below $26,200 and the 100-hourly Simple Moving Average. Furthermore, an interconnected bearish trend line is forming, indicating resistance around $26,070 on the BTC/USD hourly chart.
Regarding potential upward movement, the immediate resistance aligns with the $26,100 level, the aforementioned trend line, and the 100-hourly Simple Moving Average. The initial significant resistance level stands at roughly $26,200. If this level is surpassed, it could set the stage for a price increase towards the resistance at $26,500.
Source: BTCUSD on TradingView.com
For a substantial upward movement to materialize, the price needs to establish a firm position above the resistance at $26,500. Should this scenario unfold, it could lead to a potential test of the $27,000 level. Further advances could potentially pave the way for a more significant upsurge, targeting the $27,800 threshold.
More Losses In BTC?
Should Bitcoin be unable to overcome the resistance at $26,200, there’s a possibility of a continued downward trajectory. In such a scenario, the immediate support on the downside can be found around the $25,900 region, aligning with the 61.8% Fibonacci retracement level derived from the upward movement spanning from the $25,360 low to the $26,780 high.
The subsequent significant support is situated near the $25,400 mark. A downside breach beneath this level could potentially lead to an extended decline in the price. In such a scenario, the price might descend towards the $24,800 range.
Technical indicators:
- The hourly MACD is currently showing diminishing momentum within the bearish region.
- The hourly RSI (Relative Strength Index) for BTC/USD has now dropped below the 50 level.
Key support levels to monitor:
- Major Support Levels: $25,900, followed by $25,400.
- Major Resistance Levels: $26,200, $26,500, and $27,000.