Bitcoin price is consolidating above the $26,000 support. BTC could start falling again if it stays below $27,400 for a long time.
- Bitcoin is struggling to gain pace above the $27,400 resistance.
- The price is trading near $26,500 and the 100 hourly simple moving average.
- There was a break above a descending channel with resistance near $26,420 on the hourly chart of BTC/USD (data feed from Kraken).
- The pair could drop again if there is a move below the $26,000 support area.
Bitcoin price is facing resistance
Bitcoin price remained stable above the $26,000 level. Bitcoin was trading as low as $26,139 and recently started an upward correction. It was able to climb above the $26,250 level.
There was a move above the 23.6% Fibonacci retracement level of the downward move from $27,387 swing high to $26,139 low. Besides, there was a break above the descending channel with resistance near $26,420 on the hourly chart of BTC/USD.
Bitcoin price is now trading near $26,500 and the 100 hourly simple moving average. It seems that it is facing resistance near the $26,750 level. It is close to the 50% Fibonacci retracement level of the downward move from $27,387 of the swing high to $26,139.
A clear move above the $26,750 resistance might start a decent rally. The next major resistance is near the $27,000 level. A close above $27,000 could send the price higher.
source: BTCUSD on TradingView.com
The next major resistance is near the $27,400 level. A clear move above the $27,400 resistance might require a move towards the $27,500 resistance. Any additional gains above the $27,500 resistance area could send the price towards the $28,500 resistance area.
New drop in bitcoin?
If bitcoin price fails to clear the $27,000 resistance, it may continue to decline. Another dip. There is immediate support on the downside near the $26,140 level.
The next major support is near the $25,850 level, below which the price might accelerate lower. In the mentioned case, the price might decline towards the $25,400 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 relative strength indicator for BTC/USD is near the 50 level.
Major Support Levels – $26,140, followed by $25,840.
Major resistance levels – $26,750, $27,000 and $27,400.
