Bitcoin Holds Support Level as Price Consolidates
The price of Bitcoin has experienced a fresh decline after facing resistance at the $27,500 level. As a result, BTC entered a bearish zone and dropped below $27,000. However, it found support near $26,550, where bulls stepped in to prevent further losses.
Despite two unsuccessful attempts by bears to push the price below $26,550, it remained well-bid. Currently, Bitcoin is consolidating its losses below the 23.6% Fibonacci retracement level of the downward move from the $28,285 swing high to the $26,551 low.
Bitcoin is now trading below both the $27,200 level and the 100 hourly Simple Moving Average (SMA). On the hourly chart of the BTC/USD pair, there is also a key bearish trend line forming with resistance near $26,200.
Possible Upside Correction
Bitcoin may see a corrective move to the upside in the near term. The first major resistance level is around $26,950. This is followed by the $27,200 level and the 100 hourly SMA. Additionally, there is a trend line resistance near $27,400.
A close above the crucial resistance level of $27,500 could signal a steady increase towards $28,000. However, the main hurdle for Bitcoin remains at $28,500. If this level is surpassed, it could initiate another upward movement with a target of around $30,000.
Potential for Further Losses
If Bitcoin fails to recover above the resistance level at $27,200, there is a possibility of more losses. The immediate support on the downside is near $26,550. A break and close below this level could lead to further downward movement, with the next support level at $26,000.
Technical indicators show that the MACD is losing momentum in the bearish zone, while the RSI for BTC/USD is above the 50 level.
Disclaimer: This article is not investment advice. The price of Bitcoin can be highly volatile and unpredictable. Always do your own research before making any investment decisions.
Hot Take: Bitcoin Faces Resistance at Key Level
The price of Bitcoin is currently consolidating near a key support level. While there is potential for an upside correction, resistance at $27,200 remains a significant obstacle. Traders should closely monitor this level for any breakout or reversal signals. If Bitcoin fails to gain bullish momentum, it could face further losses in the short term. On the other hand, a decisive move above $27,500 could pave the way for a sustained upward movement. As always, it’s essential to stay informed and consider multiple factors when making trading decisions in the crypto market.
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