Bitcoin price is once again experiencing a downward movement, falling below the crucial support level of $26,500. This decline indicates that BTC is at risk of further losses in the near term. Despite various attempts to break above the resistance level of $27,500, Bitcoin failed to sustain its bullish momentum. As a result, the price has now dropped below both $26,500 and the 100-hourly Simple Moving Average, suggesting a bearish trend.
Potential for Further Downsides
Currently, a major bearish trend line is forming with resistance near the $26,500 mark on the hourly chart for the BTC/USD pair. Additionally, the price is now at risk of more downsides, potentially dropping below the $26,000 level. The inability for Bitcoin to surpass the $27,500 resistance has fueled this fresh decline.
Price Consolidation and Immediate Resistance Levels
After reaching a low of around $26,026, Bitcoin is now consolidating its losses. The price is currently trading slightly above the 23.6% Fibonacci retracement level of the recent decline from the swing high of $26,711 to the aforementioned low. However, it remains trading below both $26,500 and the 100-hourly Simple Moving Average.
On the upside, the immediate resistance level is near $26,350, followed by the first significant resistance level at $26,500. This level is marked by a connecting bearish trend line and the 61.8% Fibonacci retracement level of the recent decline. A break above $26,500 could potentially trigger a bullish momentum, pushing the price towards $27,000. Furthermore, if the bullish trend continues, Bitcoin may even reach the $27,500 resistance level.
However, if Bitcoin fails to initiate a fresh increase above the $26,500 resistance, it could continue its downward movement. The immediate support level on the downside is around $26,050, followed by a major support level at $26,000. If the price breaks and closes below $26,000, it may experience further declines, potentially reaching the next support level at $25,400 in the upcoming trading sessions. In an extreme downward scenario, Bitcoin might even test the $25,000 level.
Monitoring the technical indicators, the hourly MACD (Moving Average Convergence Divergence) shows a loss of pace in the bearish zone. Additionally, the hourly RSI (Relative Strength Index) for BTC/USD is now below the 50 level, further indicating a bearish sentiment.
The failure to overcome the resistance level of $27,500 has resulted in Bitcoin’s price decline below the crucial support levels of $26,500 and the 100-hourly Simple Moving Average. The bearish trend line forming at around $26,500 further emphasizes the potential for additional losses. However, a break above the $26,500 resistance could reverse the bearish momentum and potentially lead to price gains towards $27,000 and $27,500. Traders and investors should closely monitor the support levels at $26,000 and $25,400, as a break below those levels might trigger further downside movements.
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