Bitcoin Price Could Range Trade Before The Next Big Move

2023-08-25 04:03:57

Bitcoin price is consolidating above the $25,500 level. BTC could start a decent increase if there is a close above the $27,000 resistance.

Bitcoin is struggling to clear the $26,500 resistance zone.
The price is trading near $26,100 and the 100 hourly Simple moving average.
There was a break below a connecting bullish trend line with support near $26,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to trade in a range before the next major move.

Bitcoin Price Slides Again

Bitcoin price started a recovery wave above the $26,250 resistance level. BTC even cleared the $26,500 level but the bears were active near the $26,750 zone.

A high was formed near $26,779 and the price started a fresh decline. There was a move below the $26,500 level. The price declined below the 50% Fib retracement level of the recovery move from the $25,360 swing low to the $26,779 high.

Besides, there was a break below a connecting bullish trend line with support near $26,400 on the hourly chart of the BTC/USD pair. The pair tested the 61.8% Fib retracement level of the recovery move from the $25,360 swing low to the $26,779 high.

Bitcoin is trading near $26,100 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $26,400 level. The first major resistance is now near the $26,780 level, above which the price might rise toward the $27,000 resistance.

Source: BTCUSD on TradingView.com

To start a strong increase, the price must settle above the $27,000 resistance. In the stated case, the price could test the $27,800 level. Any more gains might set the pace for a larger increase toward $28,200.

More Losses In BTC?

If Bitcoin fails to clear the $26,400 resistance, it could continue to move down. Immediate support on the downside is near the $25,900 zone.

The next major support is near the $25,400 level. A downside break below the $25,400 level might push the price again into a bearish zone. In the stated case, the price could drop toward $24,800.

Technical indicators:

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

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

Major Support Levels – $25,900, followed by $25,400.

Major Resistance Levels – $26,400, $26,780, and $27,000.

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