Bitcoin Price Struggles to Break Key Resistance
The price of Bitcoin made a recovery above $26,000, but faced difficulties in surpassing the $26,500 resistance level. Although it is currently trading above $25,800 and the 100 hourly Simple Moving Average, a short-term contracting triangle is forming with resistance near $26,000 on the BTC/USD pair’s hourly chart.
If the pair breaks the $25,550 support zone, it may experience another decline. On the upside, immediate resistance lies at the $26,000 level, followed by major resistance at $26,200 and $26,500. Only a proper close above $26,500 could initiate a significant increase, potentially testing the $28,000 level and strengthening the bulls.
Potential for Further Decline in Bitcoin
Should Bitcoin fail to surpass the $26,000 resistance, it might continue to move downwards. Immediate support lies at $25,800, with the next major support near $25,550 or the 61.8% Fib retracement level. If the price breaks and closes below $25,550, more downsides may be expected, potentially dropping to $25,000 or even $24,800.
Technical indicators show that the MACD is losing pace in the bullish zone, while the RSI for BTC/USD is currently near the 50 level. Major support levels are identified at $25,800 and $25,550, with major resistance levels at $26,000, $26,200, and $26,500.
Source: BTCUSD on TradingView.com
Hot Take: Bitcoin Faces Resistance at $26,500, Potential for Downward Movement
Bitcoin has struggled to break through the $26,500 resistance level, hindering its progress towards further gains. While it has managed to trade above $25,800 and the 100 hourly Simple Moving Average, the formation of a short-term contracting triangle near $26,000 suggests potential challenges ahead.
To avoid a decline, Bitcoin must maintain support above the $25,550 zone. Failure to do so could trigger another downward movement, with support levels at $25,000 and $24,800 coming into play. Technical indicators indicate a loss of bullish momentum, signaling a possible change in the market direction.
Overall, Bitcoin’s performance remains uncertain as it faces resistance at key levels. Traders should closely monitor the price action and be prepared for potential fluctuations in the market.
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