Bitcoin price is still consolidating above USD 25,500. BTC could attempt an upside correction, but gains may be limited above the USD 26,200 resistance.
- Bitcoin is still trading in a range above the USD 25,500 support zone.
- The price is trading below $26,000 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $25,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could try to recover, but the bears could remain active around $26,200.
Bitcoin price remains in range
Bitcoin price made another attempt to break the USD 26,000 resistance zone. However, BTC failed to gain momentum for a move above the USD 26,000 and USD 26,200 levels.
As a result, there was another bearish reaction and the price declined below the USD 25,650 level. The bulls managed to protect the USD 25,350 support and the price climbed back above USD 25,500. It is now trading below $26,000 and the 100 hourly Simple Moving Average.
In addition, a major bearish trendline is forming with resistance near $25,950 on the hourly chart of the BTC/USD pair. Immediate resistance on the upside is near the USD 26,000 level and trendline. It is close to the 23.6% Fib retracement level of the main decline from the $28,150 swing high to the $25,333 low.
The first major resistance is near the USD 26,200 level. A good close above the USD 26,200 level could spark an upside correction towards USD 26,750. It is close to the 50% Fib retracement level of the main decline from the $28,150 swing high to the $25,333 low.
Source: BTCUSD at TradingView.com
The next major resistance is around USD 27,000, above which the bulls are attempting a steady rise. In the case mentioned, the price could test the USD 28,000 level.
Another drop in BTC?
If Bitcoin fails to clear the USD 26,000 resistance, it could continue to decline. The immediate downside support is near the USD 25,500 level.
The next major support is near the USD 25,350 level. A downside break and a close below the USD 25,350 level could increase selling pressure. In the said case, the price could drop to USD 24,500 or even USD 24,000.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key Support Levels – $25,500, followed by $25,350.
Key resistance levels – $25,950, $26,000 and $26,200.