Bitcoin price is attempting an upside break above the USD 26,200 resistance. BTC needs to clear USD 26,200 and USD 26,500 to start a proper recovery wave.
- Bitcoin is still struggling to break the USD 26,500 resistance zone.
- The price is trading above $26,000 and the 100 hourly Simple Moving Average.
- There was a break above a short term bearish trendline with resistance near USD 26,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could attempt another increase if it clears $26,200 and $26,500.
Bitcoin price is facing hurdles
Bitcoin price started an upward move from the USD 25,720 zone in the short term. BTC managed to climb above the USD 26,000 resistance zone, but it is still facing many hurdles.
During the recent rise, it broke the 23.6% Fib retracement level of the downward move from the $26,779 swing high to the $25,778 low. In addition, there was a break above a short-term bearish trendline with resistance near USD 26,000 on the hourly chart of the BTC/USD pair.
Bitcoin is now trading above $26,000 and the 100 hourly Simple Moving Average. On the upside, immediate resistance is near the USD 26,175 and USD 26,200 levels.
A clear move above the USD 26,200 level could send the price towards the main resistance at USD 26,500. The average resistance is near the 61.8% Fib retracement level of the downward move from the $26,779 swing high to the $25,778 low at $26,400.
Source: BTCUSD at TradingView.com
To start a decent increase, the price must break above USD 26,500. In the case mentioned, the price could test the USD 27,000 level. Any further gains could set the pace for a bigger rise towards $28,200.
New BTC Drop?
If Bitcoin fails to clear the USD 26,200 resistance, it could spark another decline. The immediate downside support is near the USD 25,900 level.
The next major support is near the USD 25,800 level. A downside break below the USD 25,800 level could push the price further down. In the said case, the price could fall towards USD 25,400.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key Support Levels – $25,800, followed by $25,400.
Key resistance levels – $26,200, $26,500 and $27,000.