Bitcoin price is once again facing a downward trend, breaking below the crucial $26,500 support level. This decline comes after an unsuccessful attempt to surpass the $27,500 resistance level. The failure to breach this level has put BTC at risk of further losses in the near term.
BTC is currently trading below the $26,500 mark and the 100 hourly Simple Moving Average (SMA). On the hourly chart of the BTC/USD pair, a major bearish trend line is forming with resistance around $26,500. This trend line indicates the potential for more downside movements if the support level of $26,000 is also breached.
Following the decline, Bitcoin saw a consolidation of losses, with the price hovering just above the 23.6% Fibonacci retracement level of the recent decline. Although the immediate resistance on the upside is around $26,350, the key resistance levels to watch are $26,500, the connecting bearish trend line, and the 61.8% Fibonacci retracement level. A breach of these levels could lead to a bullish momentum, potentially pushing the price towards $27,000 and even $27,500.
If Bitcoin fails to overcome the resistance at $26,500, it may continue to move further down. The immediate support on the downside is around $26,050, followed by the significant support level at $26,000. A break and close below this level could trigger additional losses, potentially leading to a test of the next support level at $25,400. Furthermore, if the downward pressure persists, Bitcoin may even reach the critical level of $25,000.
Analyzing the technical indicators, the hourly Moving Average Convergence Divergence (MACD) is currently showing a decline in bearish momentum. Meanwhile, the Relative Strength Index (RSI) for BTC/USD is below the 50 level, indicating a weakening position for Bitcoin.
Bitcoin’s price has experienced a fresh decline, failing to overcome the resistance at $27,500. This has placed BTC at risk of further losses, with the possibility of the price dropping below the critical support level of $26,000. However, if Bitcoin manages to break through the resistance at $26,500, there is a chance for a bullish momentum towards $27,000 and even $27,500. Traders and investors need to carefully monitor these key levels and technical indicators to make informed decisions regarding their Bitcoin holdings.