Home CryptocurrencyAnalysis Bitcoin Price Faces Refusal Why BTC Could Resume Its Downtrend

Bitcoin Price Faces Refusal Why BTC Could Resume Its Downtrend

by SuperiorInvest

Bitcoin price was trying to clear the $17,000 resistance. BTC appears to be forming a double top and may dip below the $16,000 support.

  • Bitcoin tried to break above the $17,000 resistance but failed.
  • The price is trading above $16,300 and the 100 hourly simple moving average.
  • On the hourly chart of the BTC/USD pair (data feed from Kraken), there was a break below the key bullish trendline with support near $16,420.
  • The pair could continue to decline if it breaks the $16,000 support zone.

The Bitcoin price battle continues

Bitcoin price attempted a wave of recovery $15,500 support zone. BTC climbed above the $16,000 and $16,500 resistance levels.

It even settled above the $16,300 level and the 100 hourly simple moving average. However, the bears were active near the $16,800 zone. The price seems to have faced another major rejection near the $16,800 level, forming a double top pattern.

Bitcoin price started a new decline from the USD 16,800 zone. On the hourly chart, the BTC/USD pair has broken below a key bullish trendline with support near $16,420.

It is now nearing the 23.6% Fib retracement level of the recent rally from the $15,470 swing low to the $16,791 high. In addition, it is trading above $16,300 and 100 hour simple moving average. On the upside, immediate resistance is near the $16,600 level.

Source: BTCUSD on TradingView.com

The first major resistance is near the $16,800 zone. A successful move above the $16,800 resistance could trigger a real wave of recovery. Another major resistance is near $17,000, above which the price could pick up momentum for a move towards the $17,500 zone.

Another BTC decline?

If Bitcoin fails to climb above the $16,800 resistance, it may continue to move lower. Immediate downside support is near the $16,280 level and the 100 hourly simple moving average.

Another major support is near the $16,130 zone or the 50% Fib retracement level of the recent rise from the $15,470 swing low to $16,791, below which the price could gain bearish momentum. In the said case, the price may fall towards the $15,500 support zone.

Technical indicators:

Hourly MACD – The MACD is now picking up momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – RSI for BTC/USD is now below the 50 level.

Major support levels – $16,280, followed by $16,130.

Major Resistance Levels – $16,800$17,000 and $18,000.

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