Bitcoin Price Attempts Recovery But Here’s Why Its Path Is Fill With Challenges

2023-09-08 03:28:27

Bitcoin price is slowly moving higher above $26,000. BTC is showing signs of recovery but is still struggling to clear the $26,500 resistance zone.

Bitcoin is up 2% and trading above the $26,000 resistance zone.
The price is trading well above $26,000 and the 100 hourly Simple moving average.
There was a break above a key bearish trend line with resistance near $25,940 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could struggle to clear the $26,500 and $26,750 resistance levels.

Bitcoin Price Avoids Downside Break

Bitcoin price managed to stay above the $25,350 support zone. BTC bulls protected a major downside break and pushed the price above the $25,850 resistance.

There was a move above the $26,000 resistance zone. Besides, there was a break above a key bearish trend line with resistance near $25,940 on the hourly chart of the BTC/USD pair. The pair even climbed toward the $26,500 resistance zone where the bears appeared.

A high is formed near $26,487 and the price is now consolidating gains. It traded below the 23.6% Fib retracement level of the recent increase from the $25,609 swing low to the $26,487 high.

Bitcoin is now trading well above $26,000 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $26,400 level. The first major resistance is near the $26,500 level. A proper close above the $26,500 level might start a decent increase.

Source: BTCUSD on TradingView.com

The next major resistance is near $27,000, above which the bulls could gain strength. In the stated case, the price could test the $28,000 level.

Are Dips Now Limited In BTC?

If Bitcoin fails to clear the $26,500 resistance, it could start a downside correction. Immediate support on the downside is near the $26,100 level.

The next major support is near the $26,000 level or the 50% Fib retracement level of the recent increase from the $25,609 swing low to the $26,487 high. A downside break and close below the $26,000 level might increase selling pressure. In the stated case, the price could drop toward $25,500 or even $25,350.

Technical indicators:

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

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

Major Support Levels – $26,100, followed by $26,000.

Major Resistance Levels – $26,400, $26,500, and $27,000.

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