Bitcoin price is currently consolidating above the $25,500 support zone. Despite some attempts to break above the $26,000 resistance level, BTC has struggled to gain enough momentum. As a result, there has been a bearish reaction, causing the price to decline below $25,650. However, the bulls have managed to protect the $25,350 support level, leading to a climb back above $25,500. Nevertheless, Bitcoin is still trading below $26,000 and the 100 hourly Simple Moving Average.
On the hourly chart of the BTC/USD pair, a key bearish trend line is forming with resistance near $25,950. This trend line and the $26,000 level serve as immediate resistance levels for Bitcoin. The resistance area also coincides with the 23.6% Fibonacci retracement level of the key drop from the $28,150 swing high to the $25,333 low. If Bitcoin manages to close above the $26,200 level, it might initiate an upside correction towards $26,750. The $26,200 level is also close to the 50% Fibonacci retracement level of the aforementioned drop.
However, if Bitcoin fails to clear the $26,000 resistance, it could continue to decline. The immediate support on the downside is near the $25,500 level. If this support level is breached, the next major support is at $25,350. A downside break below this level might increase selling pressure and potentially push the price towards $24,500 or even $24,000.
Looking at the technical indicators, the MACD on the hourly chart is currently in the bearish zone and gaining pace. The hourly RSI (Relative Strength Index) for BTC/USD is above the 50 level, indicating a slight bullish momentum.
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In terms of major resistance levels, $25,950, $26,000, and $26,200 are the key levels to watch. On the other hand, $25,500 and $25,350 are the major support levels to monitor.
If Bitcoin manages to break above the $26,200 resistance and sustain an upward trend, the next major resistance level is near $27,000. A successful breach of this level could lead to a steady increase in price and a potential test of the $28,000 level.
In summary, Bitcoin price is currently stuck in a range above the $25,500 support zone. There are potential upside correction attempts, but the bears are likely to remain active near the $26,200 resistance level. Traders should monitor the key resistance and support levels mentioned above to gauge the direction of Bitcoin’s next move.
