Bitcoin Price Consolidates, Why 100 SMA Is The Key To Fresh Increase

Bitcoin

Bitcoin price is consolidating above the $25,500 support. BTC could start a fresh increase if it settles above the 100 hourly SMA and $26,150.

Bitcoin Price Eyes Recovery

Bitcoin price formed a base above the $25,400 support zone. BTC is now consolidating and slowly moving higher above the $25,650 level but it faces many hurdles.

The bulls were able to push the price above the 50% Fib retracement level of the recent decline from the $26,200 swing high to the $25,620 low. Besides, there was a break above a major bearish trend line with resistance near $25,900 on the hourly chart of the BTC/USD pair.

Bitcoin price is now testing $26,000 and the 100 hourly Simple moving average. It seems to be facing resistance near the $26,000 zone or the 61.8% Fib retracement level of the recent decline from the $26,200 swing high to the $25,620 low.

The first major resistance is near the $26,150 level. A clear move above the $26,150 resistance might start a fresh increase. The next major resistance is near the $26,500 level. A close above $26,500 might start a move toward the $26,500 resistance zone.

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The next key resistance is near the $26,800 level, above which Bitcoin might rise toward the $27,000 resistance. Any more gains above the $27,000 resistance zone might send the price toward the $27,500 resistance zone.

Another Rejection in BTC?

If Bitcoin’s price fails to clear the $26,150 resistance, it could start another decline. Immediate support on the downside is near the $25,575 level.

The next major support is near the $25,400 level, below which the price might gain bearish momentum. In the stated case, the price could drop toward the $25,000 support in the near term.

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 above the 50 level.

Major Support Levels – $25,575, followed by $25,500.

Major Resistance Levels – $26,000, $26,150, and $26,500.

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