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Bitcoin price is facing a confluence of bearish factors and it could drop sharply

Bitcoin price is consolidating above the $26,500 support. BTC could fall sharply if there is a clear move below the $26,500 support.

  • Bitcoin is still struggling to stay above the $26,500 support zone.
  • The price is below $27,250 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $27,220 on the hourly chart of the BTC/USD pair (data feed by Kraken).
  • The pair might correct higher, but upside potential might be limited above the $27,500 resistance level.

Bitcoin price holds support

Bitcoin price remained in a bearish zone below the $27,500 resistance zone. BTC failed to recover and started another decline below $27,000.

There was a surge below the $26,550 support zone, but the bulls were active near $26,500. A low is forming near $26,500 and the price is now consolidating its losses. It tests the 23.6% Fib retracement level of the main pullback from the swing high at $28,450 to the low at $26,500.

Bitcoin price is now trading below $27,250 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $27,220 on the hourly chart of the BTC/USD pair.

Immediate resistance to the upside is near $27,000 and the trend line. The next major resistance is near $27,500 and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the main pullback from the $28,450 swing high to the $26,500 low.

Source: BTCUSD on TradingView.com

A break to the upside and a close above $27,500 could trigger a decent rally towards $28,000. Any further rise above the $28,000 resistance zone could propel the price towards the $28,500 or even $29,200 resistance zone.

More BTC losses?

If bitcoin price fails to clear the $27,200 resistance, it might fall further. Immediate support on the downside is near $26,560.

The next major support is near the $26,500 zone, below which the price might start a sharp decline. In the mentioned case, the price could drop towards the $25,500 support in the coming sessions.

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 below the 50 level.

Major support levels – $26,550 followed by $26,500.

Major resistance levels – $27,200, $27,400 and $27,500.

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