Bitcoin price consolidates losses below $26,500 level. BTC is showing bearish signs and remains at risk of another drop towards USD 25,000.
- Bitcoin is struggling to recover above the $26,600 resistance zone.
- The price is trading below $26,500 and the 100 Simple hourly moving average.
- A short term bullish trendline is forming with support near USD 26,050 on the BTC/USD pair hourly chart (Kraken data feed).
- The pair could drop further and trade below the USD 26,000 support.
Bitcoin price turns red
Bitcoin price started a recovery wave from the $24,800 support zone. BTC managed to recover above the USD 25,000 and USD 25,500 resistance levels.
There was movement above the 23.6% Fib retracement level of the downward move from the $29,180 swing high to the $24,800 low. However, the price is facing a lot of hurdles on the upside near $26,600. It is still trading below $26,500 and the 100 Simple hourly moving average.
Moreover, a bullish trendline is forming near USD 26,050 on the BTC/USD pair hourly chart with support in the near term. If Bitcoin remains above the trendline, it may attempt a recovery wave.
Immediate resistance is near the $26,400 level. The next major resistance is near $26,500 and the 100 simple hourly moving average. A clear move above the 100 simple hourly moving average could trigger a recovery wave towards the USD 27,000 resistance.
Source: BTCUSD at TradingView.com
The 50% Fib retracement level of the downward move from the $29,180 swing high to the $24,800 low is close to $27,000 to act as resistance. A close above the $27,000 resistance could start a decent rise towards the $27,500 resistance zone. More gains could set the pace for a bigger rise towards $28,150.
Another drop in BTC?
If Bitcoin fails to clear the $26,500 resistance, it could fall further. Immediate downside support is near the $26,000 zone and the trendline.
The next major support is near the $25,600 level. A downside break below the USD 25,600 level could push the price further into a bearish zone. In the said case, the price could drop to $25,000.
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 now below the 50 level.
Major Support Levels – $26,000 followed by $25,600.
Major resistance levels – $26,500, $27,000 and $27,500.
