Bitcoin Price Revisits Key Support, Can Bulls Save the Day?

Bitcoin price fell and retested the $26,500 support. BTC needs to stay above the $26,500 support to avoid further losses in the coming sessions.

• Bitcoin started another decline and retested the $26,500 support.
• The price is trading below $27,500 and the 100 hourly simple moving average.
• A major bearish trend line is forming with resistance near $27,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could extend the decline if there is a clear move below the $26,500 support.

Bitcoin price turns red again

Bitcoin price failed to gain strength above the $28,200 resistance zone. BTC formed a short-term top and reacted to the downside below the $27,500 support zone.

There was a clear move below the $27,200 support zone and the price even broke the $27,000 support. It retested the key $26,500 support zone. A low is forming near $26,491 and the price is now consolidating losses. There was a minor rise above the 23.6% Fib retracement level in the downward move from the $28,240 swing high to the $26,491 low.

Bitcoin price is now trading below $27,500 and the 100-hour simple moving average. There is also a major bearish trend line forming with resistance near $27,700 on the hourly chart of the BTC/USD pair.

On the upside, an immediate resistance is near the $27,350 level. It is near the 50% Fib retracement level for the downward move from the $28,240 swing high to the $26,491 low. The next major resistance is near the $27,700 zone, the trendline and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

A close above the trendline resistance could send the price towards the $28,200 support. In the aforementioned case, the price may rise towards the $28,800 resistance, above which the price may gain bullish momentum.

More losses in BTC?

If bitcoin price fails to clear the $27,700 resistance, it could start another decline. An immediate support on the downside is near the $26,500 zone.

The next major support is near the $26,500 zone. A downside break below the $26,500 support could send the price towards the $25,800 support zone. The next major support is near the $25,200 level.

Technical indicators:

Hourly MACD – MACD is now losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – RSI for BTC/USD is now below the 50 level.

Major support levels – $26,650, followed by $26,500.

Major resistance levels – $27,350, $27,700 and $28,200.