Daily Price Outlook
- Bitcoin sees a downturn as it fails to breach the 26,600 resistance level.
- Technical indicators show divergence; RSI signals a sell zone, while MACD indicates a buy zone.
- Strategy for the day involves looking for a sell position below 26,600 with a take-profit around 26,000.
On Friday, the leading cryptocurrency Bitcoin displayed a downward trend based on British trading data, following its failure to breach the resistance level of 26,600, as observable on the two-hour timeframe. The closing of doji and spinning top candles beneath the 26,600 mark suggests the exhaustion of bulls and potential takeover by sellers.
Consequently, Bitcoin’s immediate support is projected around the 26,000 level, and a break below this threshold could steer the Bitcoin price toward the next support level at 25,800.
Upon examining the prominent technical indicators, namely the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), we note mixed signals. The RSI is indicating a sell zone, whereas the MACD rests in a buying zone, thereby displaying divergence.
This suggests a wait-and-watch approach may be necessary, requiring additional Bitcoin candle closings under the 26,600 level before considering a sell position.
Conversely, if Bitcoin breaks through the 26,600 level, it has the potential to aim for the next target of 27,000 or even higher, possibly up to 27,400. Hence, the strategy for today is to look for a sell position below 26,600, with a take-profit around the 26,000 level.
BTC/USD Price Chart – Source: Tradingview
BTC/USD - Trade Idea
Entry Price – Sell Below 26500
Stop Loss – 26850
Take Profit – 25900
Risk to Reward – 1 : 1.7
Profit & Loss Per Standard Lot = +$600/ -$350
Profit & Loss Per Micro Lot = +$600/ -$35
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