Bitcoin price is facing resistance near $17,000. BTC could start another drop unless there is a strong move above the $17,000 resistance zone.
- Bitcoin has recovered above the $16,800 resistance zone.
- The price is trading above $16,800 and the 100 hour simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken), a rising channel is forming with resistance near $17,000.
- Unless the pair closes above the $17,000 resistance zone, the pair may resume its decline.
Bitcoin price faces resistance
Bitcoin price has found support near $16,250. BTC traded to $16,260, beginning a wave of recovery. There was a clear move above the $16,500 and $16,600 levels.
The bulls were able to push the price above the $16,800 resistance and the 100-hour simple moving average line. It has made a close high and is currently trading inside a range.
Bitcoin price has broken below the 23.6% Fib retracement level of the move from swing lows of $16,260 to highs of $17,067. It is currently trading above $16,800 and the 100 hour simple moving average.
There is also a rising channel with resistance near $17,000 on the hourly chart of the BTC/USD pair. On the upside, the resistance is near $17,000 soon. The first big resistance is near $17,200. A clear break above the $17,200 resistance may require a move towards the $17,500 resistance.
Source: BTCUSD on TradingView.com
The next big resistance is near $18,000, above which the price may pick up pace and move towards the $18,450 resistance zone in the coming sessions.
Another drop in BTC?
A new drop is likely if Bitcoin fails to clear the $17,000 resistance. Near-term support for the downside is near $16,800 and the channel trend line.
The next major support is near $16,650. Approaching the 50% Fib retracement level of the move from the swing low of $16,260 to the high of $17,067. A break below the $16,650 support can lead to a drop to $16,260. Further losses could push the price closer to $16,000.
Technical indicators:
Hourly MACD – MACD is currently slowing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
Major Support Level – $16,800 followed by $16,650.
Main resistance levels – $17,000, $17,200, $17,500.
