Bitcoin price continued to drop below the $17,000 level. BTC will avoid a large fall once it breaks out of the $17,000 resistance zone.
- Bitcoin remained in the bearish zone and traded below the $17,000 support.
- The price is trading below $17,000 and the 100 hour simple moving average.
- The BTC/USD pair’s hourly chart (data feed from Kraken) has formed an important bearish trendline with resistance near $16,920.
- The pair is showing some bearish signs below the $17,000 pivot level.
Bitcoin price shows bearish signs
Bitcoin price failed to stay in the positive zone above the $17,000 pivot level. BTC bears are active and broke below the $16,800 support zone.
The price tested the $16,700 level and broke below the 100 hour simple moving average. Having made lows near $16,700, the price is now consolidating losses. It has just broken above the $16,800 resistance level.
Bitcoin price rose above the 23.6% Fib retracement level of the recent decline from a high of $17,130 to a low of $16,700. It is currently trading below $17,000 and the 100 hour simple moving average. The hourly chart of the BTC/USD pair also has a major bearish trend line forming resistance near $16,920.
On the upside, resistance will soon appear near the $16,920 levels and the bearish trendline. Close to the 50% Fib retracement level of the recent decline from the high of $17,130 to the low of $16,700.
The first big resistance is around $17,000, above which the price may start to move steadily upwards again. In this case, the price could move towards the $17,200 resistance. The next big resistance is near $17,450, above which the price will move towards the $18,000 zone in the near future.
Further loss of BTC?
More downside could come if Bitcoin fails to break out of the $17,000 resistance to initiate a new rally. The immediate support for the downside is near $16,700.
The next major support is near $16,500. A break below the $16,500 support can lead to a drop towards $16,000. Further losses could push the price towards the $15,500 pivot zone in the near future.
Technical indicators:
Hourly MACD – MACD is currently slowing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the 50 level.
Major Support Level – $16,700, followed by $16,500.
Main resistance levels – $16,920, $17,000, $17,200.
