BTC price is attempting to recover, but why is its path filled with challenges

Kamal531

The Bitcoin price is slowly rising above $26,000. BTC shows signs of recovery but still struggles to break the $26,500 resistance zone.

- Bitcoin has risen by 2% and is trading above the $26,000 resistance zone.
- The price is well above $26,000 and the 100-hour simple moving average.
- The BTC/USD hourly chart has broken a key bearish trendline, with resistance near $25,940 (data from Kraken).
- The currency pair may face resistance at $26,500 and $26,750.

Bitcoin Price Avoids Downside Break
The Bitcoin price managed to stay above the $25,350 support area. BTC bulls defended a significant downside break and pushed the price above the $25,850 resistance.

It broke the $26,000 resistance zone. Furthermore, the BTC/USD hourly chart broke a key bearish trendline with resistance near $25,940. The currency pair even climbed above the $26,500 resistance zone where bears appeared.

A high was formed near $26,487, and the price is currently consolidating gains. Its trading price is below the 23.6% Fib retracement level of the recent swing low from $25,609 to $26,487.

The current trading price of Bitcoin is well above $26,000 and the 100-hour simple moving average. The immediate resistance is near $26,400, and the first major resistance is near $26,500. If the closing price moves nicely above $26,500, there could be a substantial increase.

The next major resistance is close to $27,000, and bulls could gain strength above that level. In that case, the price might test the $28,000 level.

Is Bitcoin's Downside Limited Now?
If Bitcoin fails to break the $26,500 resistance zone, it might start a downside correction. The immediate support is near the $26,100 level.

The next major support is around $26,000, which is the 50% Fib retracement level of the recent swing low from $25,609 to $26,487. A downside break and close below $26,000 could increase selling pressure. In that case, the price might drop to $25,500 or even $25,350.

Technical Indicators:
- Hourly MACD – The MACD is losing pace in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
- Major Support Levels – $26,100, followed by $26,000.
- Major Resistance Levels – $26,400, $26,500, and $27,000.

This information is provided for reference only, and investment should be approached with caution.

Kapil334

Full of challenges.

Shri333

Let's stick to a simple judgment of direction.