Home CryptocurrencyAnalysis Bitcoin price recovery remains limited why 100 SMA is key

Bitcoin price recovery remains limited why 100 SMA is key

by SuperiorInvest

Bitcoin price started an upward correction from $15,500. BTC is now facing strong resistance near the $16,300 zone and the 100 hourly SMA.

  • Bitcoin found support near $15,500 and started an upward correction.
  • The price is trading below $16,300 and the 100 hourly simple moving average.
  • A major bearish trendline is forming with resistance near $16,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could continue to rise if it clears the $16,300 level and the 100 hourly SMA.

Bitcoin price recovery

Bitcoin price extended its decline below the $16,000 support level. BTC even jumped below the $15,800 support level, but bulls were active near the $15,500 level.

A low was formed near $15,470 and the price started an upward correction. There was a move above the $15,800 and $16,000 resistance levels. The bulls were able to push the price above the 50% Fib retracement level of the key decline from the $16,795 swing high to the $15,470 low.

Bitcoin price is now trading below $16,300 and 100 hour simple moving average. A crucial bearish trendline is also forming on the hourly chart of the BTC/USD pair with resistance near $16,200.

On the upside, immediate resistance is near the $16,200 level. The first major resistance is near the $16,300 zone and the 100 hourly simple moving average. It is near the 61.8% Fib retracement level of the key decline from the $16,795 swing high to the $15,470 low.

Source: BTCUSD on TradingView.com

The price needs to clear the trendline resistance and then $16,300 to start a decent wave of recovery. Another major resistance is near $16,500, above which the price could pick up momentum for a move towards the $17,000 zone.

Another BTC decline?

If Bitcoin fails to recover above the $16,300 resistance zone, this could trigger another decline. Immediate downside support is near the $15,900 level.

Another major support is located near the $15,550 zone, below which the price may even try to hold above $15,500. A clear move below the $15,500 support could send the price to the $14,000 support zone.

Technical indicators:

Hourly MACD – MACD is now losing momentum in the bullish zone.

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

Major support levels – $15,900, followed by $15,500.

Major resistance levels – $16,200, $16,300 and $17,000.

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