Bitcoin’s price is undergoing a corrective phase as it failed to surpass the crucial $27,400 resistance level. Currently trading below $26,600 and the 100-hourly Simple Moving Average, BTC faces hurdles in its path to recovery. This article delves into the technical analysis of Bitcoin’s price movements, highlighting potential scenarios for bears and bulls.
Bitcoin recently witnessed a fresh decline after its inability to breach the resistance level at $27,400. The subsequent downward move caused the price to dip below $26,600, accompanied by the 100-hourly Simple Moving Average. On the hourly chart of the BTC/USD pair sourced from Kraken, a notable descending channel is forming, with resistance around $26,580. It could initiate a renewed upward trajectory if Bitcoin clears the hurdles at $26,580 and $26,600
Earlier, Bitcoin managed to reclaim the $27,000 level and even surged above $27,200. However, as it approached the $27,400 zone, bearish pressure materialized, resulting in a local high near $27,368. Consequently, the price embarked on a fresh decline, slipping below the crucial support zone at $27,000.
The downward move breached the 50% Fibonacci retracement level of the previous upward swing, stretching from the $25,368 swing low to the $27,368 high. Bitcoin is trading below $26,600, with the 100-hourly Simple Moving Average indicating a bearish sentiment. Moreover, the hourly chart reveals the formation of a significant descending channel near $26,580.
Despite the prevailing bearish conditions, Bitcoin is finding support at the $26,200 level, along with the 61.8% Fibonacci retracement level of the recent upswing. Immediate resistance awaits at the $26,580 level, followed by the channel zone, with the subsequent crucial barrier at $26,600. A convincing close above $26,600 might fuel a further rally.
If Bitcoin surpasses the $27,000 resistance, it could pave the way for an upward move toward the critical barrier at $27,400. Surmounting this resistance zone might propel the price toward the next target level of $28,500.
However, failing to clear the $26,600 resistance could lead to another downward move for Bitcoin. Immediate support can be expected near the $26,200 level. Further downside pressure might bring the price closer to the major support zone at $25,840, potentially instigating bearish momentum. The price might gravitate toward the $25,400 support level in such a scenario.
Bitcoin’s price is currently correcting lower after encountering resistance at $27,400. While facing immediate hurdles, such as the $26,580 and $26,600 levels, a breakthrough could pave the way for renewed bullish momentum. Conversely, failure to surpass these levels might trigger further downward pressure, testing crucial support zones.
