Bitcoin, at a Crossroads of Reversal Ahead of Bearish Resistance...The Bulls' Final Test

▲ Bitcoin (BTC)

Bitcoin (BTC) has recovered to the $76,500 range, but it continues to struggle for direction ahead of the $77,450 resistance level.

NewsBTC reported on May 25 (local time) that Bitcoin started its recovery after forming a base above $76,000, but it needs to break through the $77,450 resistance level to gain further upward momentum. Bitcoin is currently trading above $76,500 and the 100-hour simple moving average.

Bitcoin attempted a rebound after finding support in the $75,000 zone, rising above $76,200. It then successively surpassed $76,500 and $76,600, and also recovered the 50% Fibonacci retracement level of the decline from the $78,100 high to the $74,209 low. However, selling pressure remained strong near $77,000.

On the hourly chart, a bearish trend line has formed with resistance at $77,050. If Bitcoin moves stably above this zone, it could attempt further upside. Immediate short-term resistance is at $77,450, a level that coincides with the 83.2% Fibonacci retracement of the decline from the $78,100 high to the $74,209 low.

On the upside, $78,000 has been presented as the first key resistance level. If Bitcoin closes above $78,000, it could lead to a test of the $79,000 resistance. If further upside continues, the target zone expands to $81,500, with the next major barrier potentially being $82,000.

Conversely, if Bitcoin fails to break the $77,450 resistance, it could decline again. Short-term support is at $76,150, and the first major support is at $75,650. The $76,000 zone was then mentioned as the next defense line, and further losses could push it down to the $75,000 support. The key support is $74,200, and falling below this level could make short-term recovery difficult.

Technical indicators partially supported the possibility of a short-term rebound. The hourly Moving Average Convergence Divergence (MACD) is gaining momentum in the bullish zone, and the hourly Relative Strength Index (RSI) is above the 50-mark. However, if Bitcoin fails to surpass $77,450 and $78,000, the rebound may only be a technical retracement halted at the resistance levels.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*