Trading Bitcoin since its inception has been like riding a roller coaster, since its creation in 2009 by a person or group of people under the nom de plume Satoshi Nakamoto, it has been the first decentralized cryptocurrency in the market.
Bitcoin price is correcting lower from the $27,400 resistance. BTC could start a new rise if it is able to clear the $26,600 resistance zone. Bitcoin started a new fall after it failed to clear the $27,400 resistance.
The price is trading below $26,600 and the very simple 100-hour moving average. A key declining channel is forming with resistance near $26,580 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could attempt a further rise if it breaks above the $26,580 and $26,600 levels.
In any case, the effects of this debacle have been felt throughout the cryptocurrency industry, with cryptocurrencies selling off across the board.
That said, looking at the common picture, BTC has only given up a small portion of its 2023 gains and, from a technical perspective, this selloff was expected, and there is a high expectation of a possible continuing uptrend.
Bitcoin Price Retains Support
Bitcoin price was able to climb back above the $27,000 level. BTC even surpassed $27,200 before bears appeared near the $27,400 area.
A high formed near $27,368 before the price started a new decline. There was a move below the $27,000 support zone. The price declined below 50% of the Fibonacci retracement level of the upward move from the low of $25,368 to the high of $27,368.
Bitcoin price is now trading below $26,600 and in a 100-hour straightforward moving average. It is also forming a key descending channel with resistance near $26,580 on the hourly chart of the BTC/USD pair.
However, it holds support at $26,200 and the 61.8% Fibonacci retracement level of the upward move from the low of $25,368 to the high of $27,368. Immediate resistance is near the $26,580 level and the channel area. The next major resistance is near the $26,600 level. A close above $26,600 could send the price even higher, this is shown in a BTCUSD graphic published by TradingView.com.
The next key resistance is near the $27,000 level. A clear move above the $27,000 resistance could require a move toward the $27,400 resistance. Further gains above the $27,400 resistance zone could send the price toward the $28,500 resistance zone.
More Losses in BTC?
If the Bitcoin price fails to break above the $26 600 resistance, it could continue to decline, another decline. Immediate downside support is near the $26,200 level.
The next major support is near the $25,840 level, below which the price could gain bearish momentum. In the indicated case, the price could fall towards the $25,400 support.
Technical Indicators
Hourly MACD: MACD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index): the RSI for BTC/USD is below the 50 level.
Main support levels: $ 26,200, followed by $ 25,840.
Main resistance levels: $ 26,600, $ 27,000, and $ 27,400.
By Marina Meza
