After breaking below a trend line support, bitcoin (BTC/USD) looks ready to bounce from a technical support zone.
What do you think?
We’re looking at the daily chart today, yo!
Bitcoin (BTC/USD) Daily Chart by TV
As you can see, BTC/USD recently broke below a trend line support that’s been around since the start of the year.
Interestingly, bitcoin’s selloff also took a breather right around the time when BTC/USD hit key area of interest.
I’m talking about the $26,000 psychological level, yo!
Not only has the $25,500 – $26,000 area served as resistance back in February, but it was also where BTC/USD bounced in mid-June.
This time around, the $25,500 – $26,000 zone represents a possible range support in the daily time frame.
Even Stochastic is pointing to a possible bounce as it flashes an “oversold” signal.
A bounce from BTC/USD’s current levels could bump the pair back up to the $28,000 mid-range zone that’s also near the broken trend line and SMA areas.
We could even see a return to the 2023 highs near $31,000 if there’s enough momentum!
I wouldn’t discount further downside moves, however.
Take note that BTC/USD is trading below the 100 and 200 SMAs for the first time since a bullish crossover happened in early March.
If BTC/USD breaks below the range support zone that we’re watching, then we could see a move back down to the $24,000 or $22,700 previous areas of interest.