Bitcoin Price Recovery Could Soon Fade If BTC Fails To Surpass 100 SMA

2023-09-04 03:32:43

Bitcoin price tested the $25,350 zone and is currently recovering. BTC must clear the $26,200 resistance to start a decent increase in the near term.

Bitcoin is attempting a recovery wave from the $25,350 zone.
The price is trading below $26,200 and the 100 hourly Simple moving average.
There was a break above a major bearish trend line with resistance near $26,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a decent increase if it clears $26,200 and the 100 hourly SMA.

Bitcoin Price Faces Hurdles

Bitcoin price remained in a bearish zone below the $27,000 resistance zone. BTC extended its decline and traded below the $26,000 level. There was also a spike below $25,500 and the price tested $25,350.

A low was formed near $25,333 and the price is now attempting a recovery wave. There was a minor increase above the $25,800 resistance. The price climbed above the 23.6% Fib retracement level of the downward move from the $28,150 swing high to the $25,333 low.

Besides, there was a break above a major bearish trend line with resistance near $26,000 on the hourly chart of the BTC/USD pair. However, Bitcoin is still trading below $26,200 and the 100 hourly Simple moving average.

Immediate resistance on the upside is near the $26,200 level and the 100 hourly SMA. The first major resistance is near the $26,750 level or the 50% Fib retracement level of the downward move from the $28,150 swing high to the $25,333 low.

Source: BTCUSD on TradingView.com

The main resistance is now forming near the $27,000 level. A clear move above the $27,000 level might send the price toward $27,500. The next major resistance is near $28,000, above which there could be a decent upward move. In the stated case, the price could test the $28,800 level.

Another Decline In BTC?

If Bitcoin fails to clear the $26,200 resistance, it could start another decline. Immediate support on the downside is near the $25,650 level.

The next major support is near the $25,350 level. A downside break below the $25,350 level might send the price further lower. 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 above the 50 level.

Major Support Levels – $25,650, followed by $25,350.

Major Resistance Levels – $26,200, $26,750, and $27,000.

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