Bitcoin’s price has taken a hit, with the cryptocurrency down 5% and trading below $26,000. There is a risk of a move toward the $25,000 support level in the near term. The decline started below the $27,000 resistance level, and the price is now trading below $26,500 and the 100 hourly Simple Moving Average. There is a bearish trend line forming with resistance near $26,100 on the hourly chart of the BTC/USD pair.
Bitcoin is now facing resistance near the $25,900 mark, near the 23.6% Fib retracement level of the recent drop from the $27,489 swing high to the $25,400 low. The next major resistance level is near $26,100 and the trendline. The main resistance level sits at $26,500 or the 50% Fib retracement level of the recent drop from the $27,489 swing high to the $25,400 low. If the price manages to break past this resistance level, it might start a decent increase.
The next key resistance level for Bitcoin is near $26,700. An upside break and close above $26,700 could start a decent increase toward $27,200. Any more gains above the $27,200 resistance zone might send the cryptocurrency toward the $27,500 resistance zone.
However, if Bitcoin’s price fails to clear the $26,100 resistance level, it could continue to move down. The immediate support on the downside is near the $25,400 level. The next major support level is near the $25,000 zone, below which the price might accelerate further downward. In this scenario, the price could drop toward the $24,500 support level in the coming sessions.
The MACD is gaining momentum in the bearish zone, and the RSI for BTC/USD is below the 50 level. Major support levels are $25,400, followed by $25,000. Major resistance levels are $26,000, $26,100, and $26,500.
Investors and traders are keeping a keen eye on the cryptocurrency market, especially after Bitcoin’s sharp decline. The market sentiment is mixed, with some analysts believing that Bitcoin’s price could experience further declines in the short term. Others believe that the current dip may present an excellent buying opportunity for long-term investors.
The recent market turbulence can be attributed to various factors. One possible cause is the regulatory crackdown on cryptocurrencies in China. The Chinese government has been tightening its grip on Bitcoin mining and trading, leading to significant disruption in the market. Furthermore, the recent ransomware attacks targeting US-based companies have raised concerns about the use of cryptocurrencies to facilitate illicit activities.
Despite the recent volatility, Bitcoin remains one of the most popular and widely adopted cryptocurrencies globally. The digital asset has experienced tremendous growth over the past decade, with its market capitalization recently surpassing $1 trillion dollars. The rise of Bitcoin has facilitated the growth of the broader cryptocurrency market, with various altcoins emerging to offer unique functionalities and use cases.
In conclusion, Bitcoin’s price has experienced a downturn, with the cryptocurrency trading below $26,000 and facing resistance at the $25,900 and $26,100 levels. Investors and traders are keeping a keen eye on the market, with many anticipating further price swings. Despite the recent turbulence, Bitcoin remains one of the most widely adopted cryptocurrencies globally, with its market capitalization surpassing $1 trillion dollars. While the market sentiment is mixed, long-term investors may see the current dip as an excellent buying opportunity.