Bitcoin Price Corrects Lower as Resistance Holds
The price of Bitcoin experienced a downside correction after failing to surpass the $27,500 resistance level. Currently, it is trading below both $27,000 and the 100 hourly Simple Moving Average, indicating a bearish trend. On the hourly chart of the BTC/USD pair, there was a significant break below a bullish trend line with support near $26,800. As a result, the pair is now at risk of further downsides below the $26,350 level.
Bitcoin Price Revisits Support Level
Following its failure to overcome the $27,500 resistance level, Bitcoin’s price entered a bearish zone. It fell below the $27,000 and $26,800 support levels. Additionally, there was a break below a major bullish trend line with support near $26,800 on the BTC/USD hourly chart. The pair has since tested the $26,350 support zone and is currently consolidating losses. It is trading close to the 23.6% Fibonacci retracement level of its recent decline from the $27,494 swing high to the $26,358 low.
Bitcoin is now trading below both $27,000 and the 100 hourly Simple Moving Average. Immediate resistance on the upside is expected near the $26,800 level. The first major resistance lies at around $27,000 along with a connecting bearish trend line and the 50% Fibonacci retracement level of its recent decline from the $27,494 swing high to the $26,358 low.
Source: BTCUSD on TradingView.com
The next crucial resistance could be near the $27,050 level. A break above this level might lead to bullish momentum, potentially pushing the price towards the $27,500 resistance. Further gains could even result in a move towards the $28,800 level in the coming days.
Possible Further Losses for Bitcoin
If Bitcoin fails to initiate an upward movement beyond the $27,000 resistance, it could continue its downward trend. The immediate support on the downside is expected near the $26,350 level. The next significant support lies at around $26,200. A break below this level and a close below it might trigger more bearish movements, potentially causing the price to decline towards the next support at $25,400.
Technical indicators reveal that the MACD is currently losing pace in the bearish zone on an hourly basis. Additionally, the RSI for BTC/USD has dropped below the 50 level.
Major Support Levels: $26,350, followed by $26,200
Major Resistance Levels: $27,000, $27,050, and $27,500
Hot Take: Bitcoin Price Faces Resistance as Downside Risk Looms
Bitcoin’s attempt to surpass the $27,500 resistance level has been unsuccessful so far. As a result, its price has corrected lower and is currently trading below key support levels. While there is a chance of a bullish breakout if Bitcoin manages to overcome immediate resistances, there is also a possibility of further losses if it fails to gain upward momentum. Traders should closely monitor the critical support and resistance levels mentioned above to gauge Bitcoin’s future price movements.
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