Bitcoin is experiencing a downward trend as it fails to maintain support above the $25,500 mark. Currently, the price is trading below $25,500 and the 100-hourly Simple Moving Average, indicating a bearish momentum. This decline was marked by a significant break below a key rising channel, which had the support of around $25,800, according to the hourly chart of the BTC/USD pair sourced from Kraken.
Although a corrective upward movement is possible, any potential gains are expected to be limited once the price surpasses the $25,500 threshold. The failure to initiate a fresh increase above the $26,200 resistance zone has hindered Bitcoin’s positive zone, leading to a decline below the crucial $25,500 support level. As a result, the price further slipped below the $25,400 support, reaching a new weekly low.
Furthermore, the hourly chart of BTC/USD revealed a breach in a key rising channel that had support near $25,800. This descent continued below the $25,000 support zone, forming a low of around $24,818. The price is consolidating its losses, trading near the 23.6% Fibonacci retracement level of the recent downturn from the $26,063 swing high to the $24,818 low.
Bitcoin’s current position is below $25,500 and the 100-hourly Simple Moving Average, with immediate resistance near the $25,200 level. The first major resistance level lies around $25,500, close to the recent decline’s 50% Fibonacci retracement level. Should the price surpasses the $25,500 resistance, it could prompt a fresh increase, with the subsequent significant resistance at approximately $26,000. A breakthrough at this level might propel the bulls toward the $26,500 resistance zone.
However, failing to surpass the $25,500 resistance could prolong the downward movement of Bitcoin’s price. In such a scenario, immediate support is anticipated around the $24,800 level, near the recent low. The next significant support level is situated at approximately $24,500. A breach below this level could amplify the bearish momentum, potentially leading the price toward the $24,000 support level in the near future.
Considering the technical indicators, the hourly MACD currently indicates an acceleration in the bearish zone. Additionally, the Relative Strength Index (RSI) for BTC/USD is below the 50 level, signifying a downward pressure.
Bitcoin is facing a bearish trend as it struggles to surpass the $25,500 resistance level. A failure to break through this barrier may result in a further downward movement, with immediate support near $24,800 and subsequent significant support around $24,500. Conversely, Bitcoin could experience a fresh increase if the resistance is successfully breached, targeting resistance levels at $26,000 and $26,500.
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