The FUD surrounding Bitcoin lately is very much intact, but its recent sideways trend appeared to have kept traders in suspense of the next major movement. However, the price has increased by 2.5% earlier in 24 hours.
After initiating a drop from $29,800, Bitcoin declined steadily for a week and tested the $25,800 level. It rejected that level with a pin bar candle and held it as support.
The price increased to around $27,600 and later slipped to $26,600 after failing to push further. Since then, Bitcoin has been ranging between those price levels due to a drop in volatility, subjecting the price actions to a sideways movement.
While the price remained trapped in a range, it must move out of the tight trading range before confirming the next major direction. It is important to note that Bitcoin’s mid-term bullish is still well captured in the broadening wedge forming on the daily chart.
However, its ongoing correctional phase is currently maintained in a descending channel on the 4 hours chart. A break above this channel’s upper boundary will signal a fresh increase and a continuation of the mid-term bullish trajectory.
A sharp rejection at that boundary could trigger another leg-down to the channel’s lower boundary, which equally coincides with the wedge’s lower boundary. A major recovery should start from those lower boundaries area at around $24,000. Failure to do so may result in a huge breakdown.
Bitcoin’s Key Levels To Watch
Looking at the recent bounce from the channel’s lower trendline, BTC could test the upper trendline before rolling further. Pushing through the upper range level, the resistance area to watch for tests is $28,035 and $28,867.
If the price drops and loses the lower range level, the immediate support level to keep in mind is the previous bounce level of $25,800. The $25,255 support would be the next stopover. At the time of writing, Bitcoin looks neutral-bearish.
Key Resistance Levels: $27,600, $28,035, $28,867
Key Support Levels: $26,600, $25,800, $25,255
- Spot Price: $27,400
- Trend: Neutral-Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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