Bitcoin’s price dropped after it was unable to break above the $17,300 level. In the coming sessions, BTC could see heavy buying interest around $16,900 or $16,700.
- There was no sustained buying interest in Bitcoin high enough to propel the price above $17,300 or $17,450.
- As of this writing, the price is trading below $17,000 and the 100 hourly simple moving average.
- On the hourly chart for BTC/USD, key bearish trend line resistance can be seen forming near $17,150. (data feed from Kraken).
- If the pair can find buying interest above $16,900 and then $16,700, there is hope for a recovery.
Bitcoin Price Continues to remain Supported
The Bitcoin price was able to break through the $17,000 barrier. But the price didn’t pick up enough speed to move above $17,300 and $17,450. Near $17,292, the price reached its peak, and a new drop began.
It was clear that the price went down below the $17,100 and $17,000 levels. The price fell below the 50% Fibonacci retracement level of the move up from the swing low of $16,700 to the high of $17,292. The price of Bitcoin is now less than $17,000 and the 100-hour simple moving average.
On the hourly chart of the BTC/USD pair, a key bearish trend line is forming with resistance near $17,150. The move up from the swing low of $16,700 to the high of $17,292 is getting close to the 61.8% Fib retracement level.
On the way up, the $17,050 level is a strong point of resistance. The first big obstacle is near the $17,150 area and the trend line. If the price goes above these points, it may start to go up again.
In the situation described, the price could go up until it hits a barrier at $17,300. Near $17,450 is the next big point of resistance. If the price goes above that point, it will soon reach the $18,000 area.
Downside Break in BTC?
If bitcoin can’t get past the resistance at $17,150, it could lose more value. Near the $16,900 level is a level of immediate support if the price goes down.
The next big support area is around $16,700, which is also close to the last swing low. If the price falls below the support at $16,700, it could go down to $16,500. If the price drops any more, it could move toward $16,200 in the near future.
Indicators of technology:
Hourly MACD: The MACD is getting stronger in the bearish area.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is now in the “oversold” area.
The most important support levels are $16,900 and then $16,700.
There are three major levels of resistance: $17,050, $17,150, and $17,450.