The $26,500 barrier zone marked the beginning of a downward correction in the price of bitcoin. The Bitcoin price entered a bearish zone for the short term after falling below the support levels of $25,500 and $25,000.
The price even fell below the level of $24,000 and reached a low of $23,913 before recovering slightly. It is currently settling into a range that is higher than $24,000 per unit. It has just fallen from a swing high of $26,526 to a low of $23,913 and is currently trading close to the Fibonacci retracement level of 23.6%.
In addition, the price of bitcoin is currently trading at over $24,000, which is above the 100 hourly simple moving average. In the hourly chart of the BTC/USD pair, there is also an important negative trend line that is forming near $24,500 that acts as resistance.
It is quite clear that the price is getting close to a pivot point, and there is an immediate barrier located close to the $24,500 level. The following significant barrier is located close to the $25,200 zone. It is currently trading close to the 50% Fib retracement level of the latest drop from the swing high of $26,526 to the low of $23,913.
If price manages to close over the resistance at $25,200, there is a chance that it will continue climbing toward the resistance at $26,000. If the price is able to break through the important resistance level that is located close to the $26,500 zone, then it may continue to climb toward the $27,500 level.
If the price of bitcoin is unable to break through the resistance level of $25,200, it may start a new descent. The region around the $24,000 price point acts as an immediate support on the downside. The next significant support is located close to the $23,500 zone and the 100 hourly simple moving average; if the price falls below these two points, bearish momentum will increase. The area close to $22,600 represents the next significant support. Should there be any further losses, the price may go closer to the $22,000 mark.