Bitcoin price started a new decline below the $25,500 support. BTC is now at risk of further losses towards the $24,000 support area.
- Bitcoin is gaining bearish momentum below the $25,500 support.
- The price is trading below $25,500 and the 100 hourly simple moving average.
- There was a break below a major bullish channel with support near $25,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher, but gains may be limited above $25,500.
Bitcoin price extends downwards
Bitcoin price failed to start a fresh increase above the $26,200 resistance area. BTC failed to stay in positive territory after the Fed rate decision and it fell below the $25,500 support.
The price dropped below the $25,400 support to trade to a fresh weekly low. Besides, there was a break below a major ascending channel with support near $25,800 on the hourly chart of the BTC/USD pair. There was a move below the $25,000 support area.
A bottom was formed near $24,818 and the price is now consolidating losses. It is trading near the 23.6% Fibonacci retracement level of the recent decline from $26,063 to the low of $24,818.
Bitcoin price is now trading below $25,500 and the 100 hourly simple moving average. The immediate resistance is near the $25,200 level.
source: BTCUSD on TradingView.com
The first major resistance is near the $25,500 level. It is close to the 50% Fibonacci retracement level of the recent decline from $26,063 of the swing high to $24,818. A clear move above the $25,500 resistance could start a fresh increase. The next major resistance is near the $26,000 level, above which the bulls could send BTC towards the $26,500 resistance area.
More losses in bitcoin?
If bitcoin price fails to clear the $25,500 resistance, it may continue to decline. An immediate support is found on the downside near the $24,800 level and the recent low.
The next major support is near the $24,500 level, below which the price might gain bearish momentum. In the mentioned case, the price might decline towards the $24,000 support in the near term.
Technical indicators:
Hourly MACD – The MACD is gaining momentum now in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is below level 50.
Major support levels – $24,800, followed by $24,500.
Major resistance levels – $25,200, $25,500 and $26,000.