- Bitcoin has entered a new decline after diving towards the $25,500 support.
- The price is trading above $26,500 and the hourly 100 Simple Moving Average (SMA).
- There was a breakout above a bearish trend line connected to resistance around $26,000 on the BTC/USD hourly chart.
Bitcoin price reduced yesterday’s losses and rose above $26,500. BTC is now facing strong resistance around the $27,400 region.
Bitcoin Recovers But Can’t Stay Strong
Bitcoin price found support around the $25,400 region after a major decline. BTC formed a base and was able to start a recovery wave above the $26,000 level.
The BTC/USD pair broke above a bearish trend line that merged with resistance around $26,000 on the hourly chart. BTC managed to move into a positive zone by surpassing the $27,000 resistance. However, bears became active again around $27,400 and $27,500 levels.
A peak was formed around $27,387 and the price is currently consolidating gains. The price is trading below the 23.6% Fib retracement level of the last rise from the $25,369 low to $27,387 high.
BTC/USD 1 Hour Price Chart
Bitcoin price is trading above $26,500 and the 100 hourly Simple Moving Average. The first resistance is near the $27,400 level. The next major resistance level is around $27,500. A closing price above $27,500 could further increase the price.
The next important resistance level is around $28,000. A break and close above $28,000 could start a smooth rise towards $28,500. Further gains above the $28,500 resistance zone could lead the price towards the $29,500 resistance zone.
Is a New Decline Possible for BTC?
Bitcoin price could start another decline if it fails to break the $27,400 resistance. Immediate support on the downside is around the $26,700 level and the 100 hourly Simple Moving Average.
The next major support is around the $26,400 region or the 50% Fib retracement level of the last rise from the $25,369 low to $27,387 high. In this case, the price could fall towards the $26,000 support.
Technical indicators:
- Hourly MACD – MACD is gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – RSI is above the 50 level for BTC/USD.
- Important Support Levels – $26,400, followed by $26,000.
- Important Resistance Levels – $27,400, $27,500, and $28,500.
