Bitcoin price is consolidating above the $26,000 support. BTC could start a fresh decline if it stays below USD 27,400 for a long time.
- Bitcoin is struggling to gain pace for a move above the $27,400 resistance.
- The price is trading near $26,500 and the 100 simple hourly moving average.
- There was a break above a bearish channel with resistance near USD 26,420 on the BTC/USD pair hourly chart (Kraken data feed).
- The pair could drop again if there is a move below the USD 26,000 support zone.
Bitcoin price encounters resistance
Bitcoin price held steady above the USD 26,000 level. BTC traded as low as USD 26,139 and it recently started an upside correction. It was able to climb above the $26,250 level.
There was movement above the 23.6% Fib retracement level of the downward move from the $27,387 swing high to the $26,139 low. In addition, there was a break above a bearish channel with resistance near USD 26,420 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading near $26,500 and the 100 simple hourly moving average. It appears to be encountering resistance near the $26,750 level. It is close to the 50% Fib retracement level of the downward move from the $27,387 swing high to the $26,139 low.
A clear move above the $26,750 resistance could spark a decent move. The next major resistance is near the $27,000 level. A close above $27,000 could push the price even higher.
Source: BTCUSD at TradingView.com
The next key resistance is near the $27,400 level. A clear move above the $27,400 resistance might call for a move towards the $27,500 resistance. More gains above the $27,500 resistance zone could push the price towards the $28,500 resistance zone.
New Decline in BTC?
If the price of Bitcoin fails to clear the $27,000 resistance, it could fall further. another drop. Immediate support on the downside is near the $26,140 level.
The next major support is near the $25,850 level, below which the price could accelerate lower. In the said case, the price could fall towards the $25,400 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is near the 50 level.
Key Support Levels – $26,140, followed by $25,840.
Major resistance levels – $26,750, $27,000 and $27,400.
