Key Takeaways:
- Bitcoin price is still trading below the 50-day simple moving average (blue).
- BTC/USD is struggling to clear a key declining channel with resistance near $27,050 on the daily chart.
- The price could nosedive toward the $23,800 support before a new increase.
NEW DELHI (CoinChapter.com) — Bitcoin price follows a bearish path below $27,000. BTC/USD could spike below the $25,000 support before the bulls take a stand.
Bitcoin Price Is Still Following Declining Structure
This past week, we saw a bearish pattern in Bitcoin price below the $28,000 level. The BTC/USD pair settled below the $27,500 support to move into a bearish zone.
Earlier, there was an attempt to surpass the $28,250 resistance zone, but the bulls failed. The price topped nearly $28,280 and started another decline. As discussed in the past analysis, the price still struggles to clear a key declining channel with resistance near $27,050 on the daily chart.
The price also trades below the 50-day simple moving average (blue). Recently, the price tested the 50% Fib retracement level of the main increase from the $19,591 swing low to the $30,968 high.
The bulls were able to start a recovery wave above the $26,000 level. However, Bitcoin still shows bearish signs below the 50-day simple moving average (blue) and the channel resistance zone. Therefore, there is a risk of a fresh decline toward the $25,250 support.
The next major support is near the $25,000 level. The current price action suggests there are chances of a push below the $25,000 support. The price might flush below $25,000 and test the $24,000 support.
The 61.8% Fib retracement level of the main increase from the $19,591 swing low to the $30,968 high is also near the $24,000 zone. Any more losses could trigger a bearish wave toward $22,250.
Fresh Rally?
If Bitcoin stays above the $25,000 support, another attempt to clear the $27,000 resistance zone could be made. The next key resistance is near the $27,050 zone, the 50-day simple moving average (blue), and the channel trend line.
If there is a clear move above the channel resistance, the price could rise toward the $28,400 resistance. Any more gains might push the price toward the $30,000 resistance zone.
Overall, Bitcoin price is still trading below the 50-day simple moving average (blue). A close above the channel resistance and $27,250 could start a decent increase toward the $30,000 resistance. Conversely, the price might nosedive toward the $24,000 support level soon.
