Bitcoin closed below $26,500 on Wednesday for the first time since mid-March.
The level had served as key support for months before Wednesday’s breakdown.
However, the jury is out on whether that breakdown holds.
Bitcoin is testing the $26,500 level as new resistance today, and bulls are doing everything possible to close the session back above that mark.
But as always, a daily close above $26,500 and, ideally, $26,700 is required to flip the level back to support and expose the liquidation cluster at $27,800.
Until then, the $26,500-$26,700 area is critical resistance.
And unless BTC bulls can reclaim that area this week, the next stop for Bitcoin lies in the $25,000 region.
There’s also the bottom of a descending channel just below that level near $24,800.
So without a sustained break back above $26,500-$26,700, the $25,000 area is next.
Where Bitcoin goes from there (if tested) depends on how the market reacts to channel support and the $25,200 horizontal level.
That said, don’t rule out a reclaim this week, especially given how indecisive markets have been this month.
A daily close above $26,500 and $26,700 would confirm the fakeout and expose $27,600 and likely the liquidation cluster at $27,800.
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