Key Takeaways:
- Bitcoin price started a fresh decline below the $27,000 support zone.
- BTC/USD is following a declining channel with resistance near $27,100 on the 4-hour chart.
- The price might extend its decline toward the $25,000 support region.
NEW DELHI (CoinChapter.com) — Bitcoin is struggling to recover above $27,500. BTC/USD might start a major decline if there is a clear drop below $26,500.
Bitcoin Price Faces Key Hurdles
This past week, Bitcoin price attempted a recovery wave above the $27,000 level. The BTC/USD pair corrected above the $27,500 level, but the bears were active near the $27,500 level.
The price failed to gain pace for a move above the $27,500 level. The recent high was around $27,297 before the price reacted to the downside. A low is formed near $26,547, and the price is now stable above the $26,500 support.
The price follows a declining channel with resistance near $27,100 on the 4-hour chart. It is also well below the $27,000 level and the 50 simple moving average (4 hours, blue).
Immediate resistance is near the $26,920 or 50% Fib retracement level of the downward move from the $27,297 swing high to the $26,547 low. The first major resistance is now forming near the channel trend line.
The 76.5% Fib retracement level of the downward move from the $27,297 swing high to the $26,547 low is also near the channel trend line. Therefore, a close above the $27,120 level might send the price toward the main hurdle at $27,500.
If Bitcoin bulls clear the $27,500 hurdle, there could be a steady increase toward the $29,200 resistance. Any more gain may perhaps send Bitcoin toward the $30,000 resistance.
On the downside, the first major support is near the $26,500 level. The next key support sits near the $26,150 level. A close below the $26,150 support could initiate a major decline. In the stated case, there is a risk of a drop toward the $25,000 support.
Any more losses might lead the price toward the $24,000 support, where the bulls could take a strong stand.
Overall, Bitcoin price is struggling to hold the $26,500 support. If the bears remain active, there could be a strong flush below $26,000. But, conversely, the price might start a decent increase above the channel resistance and then $27,500.
