Bitcoin price is consolidating above the $26,500 support. BTC could decline sharply if there is a clear move below the USD 26,500 support.
- Bitcoin is still struggling to stay above the $26,500 support zone.
- The price is trading below $27,250 and the 100 hourly simple moving average.
- A major bearish trendline is forming with resistance near USD 27,220 on the BTC/USD pair hourly chart (Kraken data feed).
- The pair could correct higher, but the upsides could continue above the USD 27,500 resistance.
Bitcoin price holds support
Bitcoin price remained in a bearish zone below the USD 27,500 resistance zone. BTC did not recover and started again below USD 27,000.
There was a spike below the $26,550 support zone, but the bulls were active near $26,500. A low is forming near USD 26,500 and the price is now consolidating losses. It tests the 23.6% Fib retracement level of the main drop from the $28,450 swing high to the $26,500 low.
Bitcoin price is now trading below USD 27,250 and the 100 Simple hourly moving average. A major bearish trendline is also forming with resistance near USD 27,220 on the hourly chart of the BTC/USD pair.
Immediate resistance on the upside is near the $27,000 level and trendline. The next major resistance is near the $27,500 level and the 100 simple hourly moving average. It is close to the 50% Fib retracement level of the main drop from the $28,450 swing high to the $26,500 low.
Source: BTCUSD at TradingView.com
An upside break and close above $27,500 could start a decent move towards $28,000. More gains above the $28,000 resistance zone could send the price towards the $28,500 resistance zone or even $29,200.
Lose more in BTC?
If the price of Bitcoin fails to clear the $27,200 resistance, it could fall further. Immediate support on the downside is near the $26,560 level.
The next major support is near the $26,500 zone, below which the price could start a strong decline. In the said case, the price could move down towards the $25,500 support in the coming sessions.
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 below the 50 level.
Major Support Levels – $26,550 followed by $26,500.
Major resistance levels – $27,200, $27,400 and $27,500.