Bitcoin Price Faces Confluence of Bearish Factors And Could Decline Heavily

Bitcoin price is consolidating above the $26,500 support. BTC could decline heavily 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 trading 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 from Kraken).
The pair could correct higher, but upsides might be contained above the $27,500 resistance.

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 spike below the $26,550 support zone but the bulls were active near $26,500. A low is formed near $26,500 and the price is now consolidating losses. It is testing the 23.6% Fib retracement level of the main drop from the $28,450 swing high to the $26,500 low.

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

Source: BTCUSD on TradingView.com

An upside break and close above $27,500 could start a decent increase toward $28,000. Any more gains above the $28,000 resistance zone might send the price toward the $28,500 resistance zone or even $29,200.

More Losses in BTC?

If Bitcoin’s price fails to clear the $27,200 resistance, it could continue to move down. Immediate support on the downside is near the $26,560 level.

The next major support is near the $26,500 zone, below which the price might start a strong decline. In the stated case, the price could drop toward 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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