Key Takeaways:
- Bitcoin price could be forming a head-and-shoulders pattern with support at $25,750.
- BTC/USD is struggling below a key bearish trend line with resistance near $26,350 on the 4-hour chart.
- The price could start another decline if there is a move below $25,750.
YEREVAN (CoinChapter.com) — Bitcoin price is struggling to recover above $26,500. BTC/USD is still at a risk of more downsides below the $25,000 level.
Bitcoin Price Faces Many Hurdles
After a major decline, Bitcoin recovered from the $24,713 low. The BTC/USD pair corrected above the $25,000 and $25,500 levels.
The bulls pushed the price above the $25,750 pivot level and then $26,000. However, they struggled above $26,500. A high is formed near $26,840, and the price is again below the $26,500 level.
Bitcoin trades below $26,400 and the 50 simple moving average (blue, 4-hour). It is also struggling below a key bearish trend line with resistance near $26,350 on the 4-hour chart.
More importantly, BTC could form a head-and-shoulders pattern with support at $25,750. The support coincides with the 50% Fib retracement level of the upside correction from the $24,713 swing low to the $26,840 high.
A successful close below the $25,750 support might put much pressure on the bulls. The next key support is near $25,500 or the 61.8% Fib retracement level of the upside correction from the $24,713 swing low to the $26,840 high.
A close below the $25,500 support might spark a move toward the $24,750 support zone. If Bitcoin fails to stay above the $24,750 support, there could be a drop toward the $23,500 level. Any more losses might open the doors for a move toward the $22,500 level.
On the upside, Bitcoin faces resistance near the $26,200 level and the 50 simple moving average (blue, 4-hour). The first major resistance is near the trend line and $26,500.
A successful daily close above the $26,500 resistance could initiate strong bullish moves. Bitcoin might rise toward $27,800 or even $28,400 in the stated case.
Bitcoin’s price still follows a bearish path below $26,500. If it stays below $26,500, there could be a fresh drop to $24,750 or even $23,500. Conversely, BTC might rally if there is a close between $26,350 and $26,500.
The post Bitcoin Price Prediction – Bearish Pattern Suggests BTC Is Vulnerable To Another Drop appeared first on CoinChapter.
