Bitcoin has shown signs of recovery as its price gradually moves higher above $26,000. Despite this upward movement, the cryptocurrency is currently struggling to clear the $26,500 resistance zone.
Bitcoin managed to stay above the $25,350 support zone, thanks to the efforts of bullish investors. They protected against a major downside break and successfully pushed the price above the $25,850 resistance level.
Another positive development occurred as there was a break above a key bearish trend line with resistance near $25,940 on the hourly chart of the BTC/USD pair. This break indicated a potential shift in market sentiment.
After climbing towards the $26,500 resistance zone, Bitcoin experienced a minor setback. A high was formed near $26,487, and the price is currently consolidating its recent gains.
Although facing resistance, Bitcoin remains in a positive position, trading well above $26,000 and the 100 hourly Simple Moving Average. The immediate resistance on the upside is near the $26,400 level. Should the price break above this, it may encounter the first major resistance at $26,500. A successful close above this level could potentially trigger a decent increase in Bitcoin’s price.
However, if Bitcoin fails to clear the $26,500 resistance, it may experience a downside correction. The immediate support on the downside is near the $26,100 level. This support level is crucial in determining whether the price will face further selling pressure.
The next major support for Bitcoin lies near the $26,000 level or the 50% Fibonacci retracement level of the recent increase from the $25,609 swing low to the $26,487 high. If the price breaks below this level and closes below it, it might lead to increased selling pressure. In such a scenario, Bitcoin could potentially drop towards $25,500 or even $25,350.
Analyzing the hourly charts, a few technical indicators provide insights into Bitcoin’s current status. The hourly MACD, which measures the cryptocurrency’s momentum, suggests a loss of pace in the bullish zone. On the other hand, the Relative Strength Index (RSI) for BTC/USD is now above the 50 level, indicating positive market sentiment.
Bitcoin’s struggle to break resistance levels has become the focus of market participants. While the cryptocurrency has shown signs of recovery and remains above key support levels, it is currently facing obstacles in surpassing the $26,500 resistance. The outcome will heavily depend on whether Bitcoin bulls continue to protect key support levels and manage to push the price higher. Traders and investors will closely monitor the price actions and technical indicators to assess the likelihood of a potential breakout or downside correction.