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Bitcoin Price Back To Square One, Why This Could Be A Bearish Signal
Bitcoin price trimmed all gains and tested the $25,650 zone. BTC is now at risk of a fresh decline toward the $24,500 level in the near term.
Bitcoin Price Starts Fresh Decline
Bitcoin price failed to climb again above the $27,000 resistance zone. BTC started a fresh decline and gained bearish momentum below the $26,500 level.
There was a clear move below the $26,200 level. The price even spiked below the $26,000 level. A low is formed near $25,663 and the price is now consolidating losses. Bitcoin is now trading below $26,600 and the 100 hourly Simple moving average.
Besides, there is a key bearish trend line forming with resistance near $26,750 on the hourly chart of the BTC/USD pair. Immediate resistance on the upside is near the $26,250 level. It is close to the 23.6% Fib retracement level of the recent decline from the $28,150 swing high to the $25,663 low.
The first major resistance is near the $26,650 level or the trend line region. The trend line is also close to the 50% Fib retracement level of the recent decline from the $28,150 swing high to the $25,663 low. The main resistance is now forming near the $27,000 level.
Source: BTCUSD on TradingView.com
A clear move above the $27,000 level might send the price toward $27,400. The next major resistance is near $28,000, above which there could be a sustained increase. In the stated case, the price could test the $29,200 level.
More Losses In BTC?
If Bitcoin fails to clear the $26,750 resistance, it could continue to move down. Immediate support on the downside is near the $25,800 level.
The next major support is near the $25,650 level. A downside break below the $25,650 level might put a lot of pressure on the bulls. In the stated case, the price could drop toward $24,500.
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 now below the 50 level.
Major Support Levels – $25,800, followed by $25,650.
Major Resistance Levels – $26,250, $26,750, and $27,000.