Bitcoin (BTC/USD) appears poised to rebound from a technical support area after breaching below a trend line support.
Your thoughts?
Today, we're examining the daily chart.
As you can see, the trend line support for BTC/USD has been present since the beginning of the year.
It's interesting to note that the decline in the value of bitcoin paused about the time when BTC/USD struck a significant area of interest.
I'm referring to the psychological level of $26,000.
The $25,500 - $26,000 range not only functioned as resistance in February, but it was also the place where BTC/USD bounced in the middle of June.
This time, a potential range support in the daily time frame is in the $25,500–26,000 region.
Even Stochastic, which flashes a "oversold" signal, is suggesting a potential bounce.
A rebound from the present levels of BTC/USD might push the pair back up to the $28,000 mid-range region, which is also close to the areas of the broken trend line and SMA.
If there is enough momentum, we might possibly witness a comeback to the 2023 highs over $31,000!
However, I wouldn't rule out additional declines.
Be aware that the price of BTC/USD is currently trading below the 100 and 200 SMAs for the first time since a bullish crossover took place in early March.
We could witness a decline back to the prior regions of interest at $24,000 or $22,700 if BTC/USD falls below the range support zone that we're observing.
