The price of bitcoin struggled to overcome the $17,000 resistance. BTC appears to be forming a double top pattern and could drop below the $16,000 support.
- Bitcoin attempted to break above the $17,000 resistance but failed.
- The price is trading above $16,300 and the 100 hourly simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) has broken below a key bullish trendline with support near $16,420.
- The pair may continue to decline if it breaks the $16,000 support zone.
The fight over the price of bitcoin continues
Bitcoin price has attempted a recovery from the $15,500 support zone. BTC surged 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 have been active near the $16,800 zone. It looks like the price is facing another major rejection near the $16,800 level and is forming a double top pattern.
The price of bitcoin has started a new decline from the $16,800 zone. On the hourly chart of the BTC/USD pair, there has been a break below the key bullish trendline with support near $16,420.
It is currently approaching the 23.6% Fibonacci retracement level of its recent rise from a swing low of $15,470 to a high of $16,791. Also, it is trading above $16,300 and the 100 hourly simple moving average. On the upside, immediate resistance lies near the $16,600 level.
Source: BTCUSD on TradingView.com.
The first major resistance lies near the $16,800 zone. A successful move above the $16,800 resistance could start a real recovery wave. The next major resistance is near $17,000, above which the price could gain momentum to move towards the $17,500 zone.
Fresh drop in BTC?
If bitcoin fails to rise above the $16,800 resistance, it could continue down. Immediate support on the downside is near the $16,280 level and the 100 hourly simple moving average.
The next major support lies near the $16,130 zone or the 50% Fibonacci retracement level of the recent rise from the $15,470 swing low to the $16,791 high, below which the price could gain bearish momentum. In this case, the price may fall to the $15,500 support zone.
Hourly MACD – Now the MACD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
The main support levels are $16,280 followed by $16,130.
The main resistance levels are $16,800$17,000 and $18,000.