Bitcoin Price Could Restart Up If It Removes This Resistance
Bitcoin price is going through a corrective phase as it failed to surpass the important resistance level of $27,400. Currently trading below $26,600 and the 100-hour Simple Moving Average, BTC has faced hurdles on its journey to recovery. This article delves into the technical analysis of Bitcoin price action, highlighting potential bearish and bullish scenarios.
Bitcoin has recently witnessed a fresh decline following its inability to break through the resistance level at $27,400. Subsequent downside moves saw the price drop below $26,600, accompanied by the 100-hour Simple Moving Average. On the hourly chart of the Kraken-sourced BTC/USD pair, a notable descending channel is forming, with resistance around $26,580. It could start a renewed upward trajectory if Bitcoin crosses the $26,580 and $26,600 hurdles
Previously, Bitcoin managed to reclaim the $27,000 level and even jumped above $27,200. However, as it approached the $27,400 zone, the bearish pressure manifested, resulting in a local high near $27,368. As a result, the price started a new slide, slipping below the key support zone of $27,000.
The downside pierced the 50% Fibonacci retracement level of the previous upward swing, extending from a swing low of $25,368 to a high of $27,368. Bitcoin is trading below $26,600, with the 100-hour Simple Moving Average showing bearish sentiment. Moreover, the hourly chart shows forming a significant descending channel near $26,580.
Despite the prevailing bearish conditions, Bitcoin is finding support at $26,200, along with the 61.8% Fibonacci retracement level of its recent gains. Immediate resistance awaits at $26,580, followed by the channel zone, with the next important barrier at $26,600. A convincing close above $26,600 could spark a further rally.
If Bitcoin surpasses the $27,000 resistance, it could pave the way for an upside move towards the critical $27,400 barrier. Overcoming this resistance zone could push the price towards the next target level of $28,500.
However, failing to pass the $26,600 resistance could lead to another downside move for Bitcoin. Immediate support can be expected near the $26,200 level. Further downside pressure might bring the price closer to the key support zone at $25,840, potentially triggering a bearish momentum. The price may lean towards the $25,400 support level in such a scenario.
Bitcoin price is currently correcting lower after facing resistance at $27,400. While facing immediate hurdles, such as the $26,580 and $26,600 levels, a break could pave the way for fresh bullish momentum. Conversely, failure to surpass this level could trigger further downward pressure, testing an important support zone.
