Daily Price Outlook
- Bitcoin finds support around $26,200, with doji and hammer candle formations indicating weakening bearish bias and seller exhaustion.
- Divergence between RSI and MACD, with oversold RSI and buy zone MACD, adds complexity to Bitcoin’s price movement.
- $26,500 acts as resistance with the 50-day exponential moving average, urging caution and a wait for breakout confirmation.
During the Asian session, Bitcoin found support around the $26,200 level, indicated by the formation of doji and hammer candles. This suggests a potential weakening of the bearish bias and exhaustion among sellers.
The $26,200 level is being reinforced as strong support for Bitcoin. However, there is a divergence between the RSI and MACD indicators, with RSI in the oversold zone and MACD showing a buy zone.
The 50-day exponential moving average is acting as resistance near $26,500, adding pressure to Bitcoin. It is advisable to wait for a breakout from the current range.
A break below $26,200 could lead to further downward movement towards $25,400, while a confirmed breakout could provide selling opportunities, potentially targeting $24,750.
On the other hand, if Bitcoin holds above $26,200, it could aim for resistance levels at $26,000 and $27,400. Breaking through the $26,500 resistance is crucial.
The current candlestick patterns, including the hammer candle, suggest investor uncertainty regarding the cryptocurrency’s trend. Monitoring for fundamental events that could impact the price is essential.
BTC/USD Price Chart – Source: Tradingview
BTC/USD – Trade Idea
Entry Price – Buy Above 26162
Stop Loss – 25295
Take Profit – 27350
Risk to Reward – 1: 1.27
Profit & Loss Per Standard Lot = +$1188/ -$867
Profit & Loss Per Micro Lot = +$118/ -$86
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