Bitcoin Price Defies Gravity But Here Is Why It Could Decline Again

Bitcoin Price Defies Gravity But Here Is Why It Could Decline Again

June 9, 2023

Bitcoin price is consolidating above the $26,000 support. BTC could start another decline if it stays below $27,400 for a long time.

  • Bitcoin is struggling to gain pace for a move above the $27,400 resistance.
  • The price is trading near $26,500 and the 100 hourly Simple moving average.
  • There was a break above a declining channel with resistance near $26,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could decline again if there is a move below the $26,000 support zone.

Bitcoin Price Faces Resistance

Bitcoin price remained stable above the $26,000 level. BTC traded as low as $26,139 and recently started an upside correction. It was able to climb above the $26,250 level.

There was a move above the 23.6% Fib retracement level of the downward move from the $27,387 swing high to the $26,139 low. Besides, there was a break above a declining channel with resistance near $26,420 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading near $26,500 and the 100 hourly Simple moving average. It seems to be facing resistance near the $26,750 level. It is close to the 50% Fib retracement level of the downward move from the $27,387 swing high to the $26,139 low.

A clear move above the $26,750 resistance might start a decent increase. The next major resistance is near the $27,000 level. A close above $27,000 might send the price further higher.

Source: BTCUSD on TradingView.com

The next key resistance is near the $27,400 level. A clear move above the $27,400 resistance might call for a move toward the $27,500 resistance. Any more gains above the $27,500 resistance zone might send the price toward the $28,500 resistance zone.

Fresh Decline in BTC?

If Bitcoin’s price fails to clear the $27,000 resistance, it could continue to move down. another decline. Immediate support on the downside is near the $26,140 level.

The next major support is near the $25,850 level, below which the price might accelerate lower. In the stated case, the price could drop toward the $25,400 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

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

Major Support Levels – $26,140, followed by $25,840.

Major Resistance Levels – $26,750, $27,000, and $27,400.

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