Bitcoin price held strong above the USD 25,500 zone. In the near term, BTC might soon attempt a recovery wave above the USD 26,500 resistance zone.
- Bitcoin is still consolidating above the USD 25,500 support zone.
- The price is trading near USD 26,050 and the 100 hourly Simple Moving Average.
- There was a break above a connecting bearish trendline with resistance near USD 25,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start some decent gains if a significant wave breaks above the USD 26,500 resistance.
Bitcoin Price Eyes recovery
Bitcoin price started falling again below the USD 25,800 zone. BTC peaked below the USD 25,600 and USD 25,500 levels. However, downsides were contained below the USD 25,350 level.
A low was formed around USD 25,359 and the price started to rise again. There was a move above the USD 25,500 and USD 25,600 levels. The price climbed above the USD 26,000 level and it tested USD 26,150. In addition, there was a break above a contiguous bearish trendline with resistance around $25,900 on the hourly chart of the BTC/USD pair.
Bitcoin is now trading near USD 26,050 and the 100 hourly Simple Moving Average. It is also above the 23.6% Fib retracement level of the recent rise from the $25,359 swing low to the $26,155 high.
The immediate resistance is near the USD 26,150 level. The next major resistance is near USD 26,250. A close above the USD 26,250 resistance could push the price towards the USD 26,500 resistance zone.
Source: BTCUSD at TradingView.com
If the bulls push the price above USD 26,500, a move towards the USD 27,000 resistance zone could occur. Finally, to stage a decent increase, the price must break above the USD 27,000 zone. A close above the USD 27,000 resistance could mark a decent rise towards the USD 27,800 resistance zone. Any further gains could set the pace for a bigger rise towards USD 28,150.
Another drop in BTC?
If Bitcoin fails to clear the USD 26,250 resistance, it could spark another decline. Immediate downside support is near the USD 25,850 zone.
The next major support is near the $25,550 level or the 76.4% Fib retracement level of the recent rise from the $25,359 swing low to the $26,155 high. A downside break below the USD 25,550 level could push the price into a bearish zone again. In the said case, the price could drop to $25,000.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key Support Levels – $25,850, followed by $25,550.
Key resistance levels – $26,250, $26,500 and $27,000.