Bitcoin’s price is once more on a downward trajectory, encountering resistance at the $27,500 mark. It’s plausible that BTC may continue its decline and retest the $25,400 support area.
The descent in Bitcoin’s value commenced subsequent to its inability to surpass the $27,500 resistance.
Currently, the price is trading below both the $27,000 threshold and the 100-hourly Simple Moving Average.
An important bullish trend line, previously situated near $26,800 on the hourly chart of the BTC/USD pair (sourced from Kraken), has been breached.
Consequently, there’s a heightened risk of further declines beneath the $26,350 level.
The Bitcoin price has returned to test its support level.
The Bitcoin price underwent a corrective move as it faced difficulty surmounting the $27,500 resistance. This resulted in BTC slipping below crucial support levels at $27,000 and $26,800, signifying a shift toward a bearish trend.
Furthermore, the hourly chart of the BTC/USD pair showed a significant break beneath a key bullish trend line with support around $26,800. The pair subsequently revisited the $26,350 support region and is presently consolidating its losses. It’s currently hovering around the 23.6% Fibonacci retracement level, calculated from the recent decline stretching from the $27,494 high to the $26,358 low.
Bitcoin’s trading position is now positioned below both $27,000 and the 100-hourly Simple Moving Average. Immediate resistance is situated near the $26,800 level. The first substantial hurdle on the upside encompasses the $27,000 area, a connecting bearish trend line, and the 50% Fibonacci retracement level originating from the recent descent spanning from the $27,494 swing peak to the $26,358 low.
![](https://sollcrypto.com/wp-content/uploads/2023/09/Screen-Shot-2023-09-22-at-8.37.02-AM.png)
The next significant resistance zone to watch out for is around the $27,050 mark. A breach of this level might trigger bullish momentum, potentially propelling the price towards the challenging $27,500 resistance. Further gains could even pave the way for a move towards the $28,800 level in the days ahead.
Could Bitcoin Experience Further Declines?
If Bitcoin is unable to initiate a fresh uptrend surpassing the $27,000 resistance, the possibility of further downward movement persists. Immediate support on the downside lies in the vicinity of the $26,350 level.
Subsequently, the next significant support can be identified at approximately $26,200. Should the price breach and conclusively settle below the $26,200 threshold, it may trigger additional bearish momentum, potentially leading to a descent towards the subsequent support level at $25,400.
Technical indicators reveal:
- Hourly MACD: The MACD is currently losing momentum within the bearish zone.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD has dipped below the 50 level.
Key Support Levels: $26,350, followed by $26,200.
Key Resistance Levels: $27,000, $27,050, and $27,500.