Bitcoin price is consolidating above USD 25,650 and USD 25,500. BTC could start a decent increase if the bulls manage to push it above the USD 26,200 resistance.
- Bitcoin is trading in a range above the USD 25,650 support zone.
- The price is trading below $26,000 and the 100 hourly Simple Moving Average.
- A bearish trendline is forming in the near term with resistance near $25,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could take a major hit if it continues to struggle below the USD 26,200 resistance zone.
Bitcoin price starts consolidation
Bitcoin price remained in a range and it stayed well below the USD 26,200 resistance zone. It seems that the BTC bulls are currently protecting a downside break below the USD 25,650 and USD 25,500 support levels.
It is clearly consolidating above the USD 25,650 level. However, it is also below $26,000 and the 100 hourly Simple Moving Average. In addition, a bearish trendline with resistance is forming near $25,800 on the hourly chart of the BTC/USD pair in the near term.
Immediate resistance on the upside is near the USD 25,800 level and trendline. The first major resistance is near the $26,000 level or the 23.6% Fib retracement level of the main drop from the $28,150 swing high to the $25,330 low.
The next major resistance is now near the USD 26,200 level. A good close above the USD 26,200 level could spark a decent recovery wave 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 $25,330 low.
Source: BTCUSD at TradingView.com
The next major resistance is around $27,000, above which the bulls could gain momentum. In the case mentioned, the price could test the USD 28,000 level.
Another drop in BTC?
If Bitcoin fails to clear the USD 26,200 resistance, it could continue to decline. The immediate downside support is near the USD 25,650 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 push the price further down. In the said case, the price could drop to USD 24,800 or even USD 24,500.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key Support Levels – $25,650, followed by $25,350.
Key resistance levels – $25,800, $26,000 and $26,200.