- Bitcoin is trading at $26,750, down 2.21% on Wednesday.
- A close above $26,600 could trigger a bullish move, but it is recommended to be cautious and confirm with multiple candle closes to avoid sharp selling pressure.
- Monitoring the $26,600 level is important as a close below this level could lead to further decline.
Bitcoin is currently facing a significant challenge as the downtrend may aim to break the key support level of $26,800 with a potential target of $26,000!
Current View of Bitcoin Price
Despite having fundamental support, Bitcoin lost all of its previous daily gains today, down 2.21% on Wednesday.
Bitcoin is currently in a downtrend with engulfing candles and a potential reversal signal. Support is holding at the $26,600 level, supported by a trendline.
A close above $26,600 could trigger a bullish move, but it is recommended to be cautious and confirm with multiple candle closes to avoid sharp selling pressure. In this case, be cautious of the $26,500 level and further decline.
BTC/USD 4 Hour Price Chart
The 50-day exponential moving average is strengthening the downtrend, especially if Bitcoin falls below the $27,000 resistance level.
Monitoring the $26,600 level is important as a close below this level could lead to further decline. Conversely, a close above $26,600 creates opportunities for long positions towards $27,000 or higher at $27,400.
It is important to monitor the $27,200 level as breaking above this level could face resistance at $27,800.
Hong Kong’s Approval of Crypto Trading Accelerates the Market
After the Hong Kong securities regulator announced on Tuesday that certain crypto assets will be available for individual investors to trade from June 1, there was an increase in crypto values.
According to the Hong Kong Securities and Futures Commission, individual investors can start trading with certain cryptocurrencies from next month, but only on registered exchange platforms.
The potential increase in retail investors from June 1 has created optimism in the market and limited Bitcoin’s losses on Wednesday.
