BTC remains in a bearish trend and could close lower this week. Its price is currently stable around $26,800. For a possible bullish rally, Bitcoin (BTC) needs to bounce off one of these support levels.
Bitcoin (BTC) is in a bearish momentum in the medium term
Despite bullish pressure over the weekend of May 27, BTC’s price failed to move higher. After approaching $28,500, the queen of crypto retreated, closing last week with a 5% loss. Currently, Bitcoin (BTC) is trading around $26,800 and could fall further.
In fact, the price has been rejected by the 50-day moving average, which is located near the upper part of the medium-term descending channel. This suggests that the bearish momentum from the year-high of $31,035 may continue. In this case, Bitcoin (BTC) could fall to the critical support at $25,280, with a potential downside of 5%. This support is currently closest to the price.
If this support is broken, the 200-day moving average could lead to a rebound. This Bitcoin (BTC) long-term trend indicator is currently at $23,272. Therefore, this area could act as a major support. Moreover, the 61.8% Fibonacci retracement level of the March range is also located in this area, which highlights the importance of this support.
Sell position?
As long as the upper half of the descending channel remains intact, a medium-term bullish scenario is unlikely. In such a bear market, it would be interesting to sell Bitcoin (BTC) with a target of one of these two support levels. In this case, half of the weekend range could be the entry point for short positions. Therefore, a retracement of Bitcoin (BTC) to this level and then to $25,281 could be considered.
