Bitcoin price once again struggled near the USD 26,500 resistance. BTC is forming a double top pattern and could revisit the $25,000 support zone.
- Bitcoin recovered above $26,000 but struggled to clear $26,500.
- The price is trading above $25,800 and the 100 hourly Simple Moving Average.
- A short-term contracting triangle is forming with resistance near $26,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could fall again if it breaks the $25,550 support zone.
Bitcoin price faces an uphill task
Bitcoin price started a decent rise above the USD 26,000 resistance zone. BTC climbed above the USD 26,200 resistance level, but the bears were active again near the USD 26,500 resistance.
The price failed to move above the USD 26,500 resistance level. A high was formed near USD 26,528 and the price started a downward correction. It appears that a double top pattern is forming near the $26,500 zone. The price is now trading below the 23.6% Fib retracement level of the upward move from the $24,925 swing low to the $26,528 high.
However, Bitcoin is now trading above $25,800 and the 100 hourly Simple Moving Average. Moreover, on the hourly chart of the BTC/USD pair, a short-term contracting triangle is forming with resistance near $26,000.
Source: BTCUSD on TradingView.com
The immediate resistance on the upside is near the USD 26,000 level. The first major resistance is around the $26,200 level. The key resistance is around the $26,500 level. A good close above the USD 26,500 level could mean significant upside. The next major resistance is around $27,200, above which the bulls could gain strength. In the said case, the price could test the $28,000 level.
Another drop in BTC?
If Bitcoin fails to start a new rise above the $26,000 resistance, it could continue to decline. The immediate downside support is near the USD 25,800 level.
The next major support is near the $25,550 level or the 61.8% Fib retracement level of the upward move from the $24,925 swing low to the $26,528 high. A downside break and a close below the USD 25,550 level could trigger more downsides. In the mentioned case, the price could drop to $25,000 or even $24,800.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now approaching the 50 level.
Major support levels – USD 25,800, followed by USD 25,550.
Major resistance levels – $26,000, $26,200 and $26,500.