Bitcoin Faces Resistance Above $26,200
The price of Bitcoin is currently encountering several obstacles above the $26,200 resistance zone. It is trading below $26,000 and the 100 hourly Simple Moving Average, indicating a bearish trend. On the hourly chart of the BTC/USD pair, a key bearish trend line is forming with resistance near $25,800.
No Signs of Recovery
Bitcoin has failed to initiate a significant recovery despite multiple attempts. After reaching a peak near $26,500, it started a fresh decline. The price closed below the $26,000 pivot level and even dipped below $25,650. Although a potential base is forming around $25,600, the upside remains limited.
Possible Scenarios
If Bitcoin manages to close below $25,350, it could face a major setback. However, a proper close above $26,200 might lead to a decent increase, with the next resistance levels at $26,500 and $27,000.
Risks of Further Decline
If the resistance at $26,200 cannot be surpassed, Bitcoin may continue its downward movement. Immediate support lies at the $25,600 level, followed by a major support level at $25,350. A break below $25,350 could result in increased selling pressure and a potential drop to $24,500 or even $24,000.
Technical Indicators
The MACD indicator is currently in the bearish zone, losing momentum, while the RSI for BTC/USD is below the 50 level.
Hot Take: Bitcoin Struggles to Overcome Resistance, Potential Further Decline
Bitcoin is facing significant resistance above the $26,200 level and has been unable to initiate a recovery. The failure to close above this resistance zone increases the risk of further decline. Immediate support levels are at $25,600 and $25,350, with a potential drop to $24,500 or $24,000 if the latter is breached. Technical indicators suggest a bearish trend, with the MACD losing momentum and the RSI below 50. Bitcoin’s ability to overcome these hurdles will determine its short-term trajectory.
Source: BTCUSD on TradingView.com
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