Bitcoin Bulls Continues To Struggle, Here’s Why Upsides Could Be Limited

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Bitcoin price is still consolidating above $25,500. BTC might attempt an upside correction, but upsides might be limited above the $26,200 resistance.

  • Bitcoin is still trading in a range above the $25,500 support zone.
  • The price is trading below $26,000 and the 100 hourly Simple moving average.
  • There is a key bearish trend line forming with resistance near $25,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could attempt to recover but the bears might remain active near $26,200.

Bitcoin Price Stuck In Range

Bitcoin price made another attempt to clear the $26,000 resistance zone. However, BTC failed to gain strength for a move above the $26,000 and $26,200 levels.

As a result, there was a fresh bearish reaction and the price declined below the $25,650 level. The bulls managed to protect the $25,350 support and the price climbed back above $25,500. It is now trading below $26,000 and the 100 hourly Simple moving average.

Besides, there is a key bearish trend line forming with resistance near $25,950 on the hourly chart of the BTC/USD pair. Immediate resistance on the upside is near the $26,000 level and the trend line. It is close to the 23.6% Fib retracement level of the key drop from the $28,150 swing high to the $25,333 low.

The first major resistance is near the $26,200 level. A proper close above the $26,200 level might start an upside correction toward $26,750. It is close to the 50% Fib retracement level of the key drop from the $28,150 swing high to the $25,333 low.

Source: BTCUSD on TradingView.com

The next major resistance is near $27,000, above which the bulls attempt a steady increase. In the stated case, the price could test the $28,000 level.

Another Drop In BTC?

If Bitcoin fails to clear the $26,000 resistance, it could continue to move down. Immediate support on the downside is near the $25,500 level.

The next major support is near the $25,350 level. A downside break and close below the $25,350 level might increase selling pressure. In the stated case, the price could drop toward $24,500 or even $24,000.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $25,500, followed by $25,350.

Major Resistance Levels – $25,950, $26,000, and $26,200.

Credit: Source link

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