BTC Bears in the Driving Seat with Sub-$26,000 the Near-Term Target

The Day Ahead

It is a quiet Saturday session. With no US economic indicators for investors to consider, the crypto news wires will continue to provide direction.

SEC activity, updates from the SEC v Ripple, SEC v Binance, and SEC v Coinbase (COIN) cases, and respective platforms and US lawmaker chatter will need tracking.

Bitcoin (BTC) Price Action

This morning, BTC was down 0.27% to $26,430. A mixed start to the day saw BTC rise to an early high of $26,556 before falling to a low of $26,342.

BTC Technical Indicators

Resistance & Support Levels

BTC needs to move through the $26,536 pivot to target the First Major Resistance Level (R1) at $26,770 and the Friday high of $26,804. A move through the morning high of $26,556 would signal an extended bullish session. The crypto news wires should be crypto-friendly to support an extended rally.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $27,038 and resistance at $27,500. The Third Major Resistance Level (R3) sits at $27,540.

Failure to move through the pivot would leave the First Major Support Level (S1) at $26,268 in play. However, barring an event-fueled sell-off, BTC should avoid sub-$26,000. The Second Major Support Level (S2) at $26,034 should limit the downside. The Third Major Support Level (S3) sits at $25,532.

Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bearish signals. BTC sat below the 50-day EMA ($26,676). The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, sending bearish signals.

A move through the 50-day EMA ($26,676) would support a breakout from R1 ($26,770) and the 100-day EMA ($26,853) to give the bulls a run at R2 ($27,038) and the 200-day EMA ($27,126). However, failure to move through the 50-day EMA ($26,676) would leave S1 ($26,268) in view. A move through the 50-day EMA would send a bullish signal.