Bitcoin’s Price Continues Its Descent, with Bears in Control

Last Updated on 21 mins by Jacob Bury

Once again, Bitcoin’s price is on a downward trajectory, slipping below the critical support level of $26,500. The cryptocurrency is teetering on the edge of further losses below the $26,000 mark in the immediate future. Here’s a breakdown of the recent developments:

  1. Failed Rally: Bitcoin’s woes began when it attempted to breach the formidable $27,500 resistance but failed, initiating a fresh decline.
  2. Bearish Signals: The current price is languishing below both $26,500 and the 100 hourly Simple Moving Average, casting a bearish shadow over the market.
  3. Bearish Trend Line: A significant bearish trend line has taken shape, with resistance forming around $26,500, as observed on the hourly chart of the BTC/USD pair (data feed from Kraken).
  4. Testing Support: Bitcoin dipped below $27,000 and $26,500 support levels, entering a bearish territory. It even tested the $26,200 support, eventually finding a low near $26,026.
  5. Consolidation: Currently, the price is consolidating its losses and is slightly above the 23.6% Fibonacci retracement level of the recent decline from the $26,711 high to the $26,026 low.
  6. Resistance Levels: Immediate resistance awaits at approximately $26,350, followed by a more substantial barrier around $26,500, marked by the bearish trend line and the 61.8% Fibonacci retracement level of the recent downturn.
  7. Bullish Scenario: If Bitcoin can overcome these resistance levels, it might gain some bullish momentum, potentially heading towards the $27,000 resistance, and even $27,500 if the momentum persists.
  8. Potential Losses: On the flip side, failure to break above the $26,500 resistance could mean further downside movement. The initial support lies near $26,050, with a more significant support zone residing around $26,000. A breach and close below $26,000 may push the price lower, testing the next support at $25,400, and in a more bearish scenario, $25,000.

Technical Indicators:

  • Hourly MACD: The MACD is currently showing signs of a bearish trend.
  • Hourly RSI (Relative Strength Index): The RSI for BTC/USD has dipped below the 50 level.

In summary, Bitcoin’s price is facing a challenging period as bears continue to exert control. The cryptocurrency market remains highly sensitive to developments, making it crucial to monitor key support and resistance levels in the coming sessions.

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