Bitcoin Price Analysis: BTC Recovery Could Soon Fade
Bitcoin price is struggling below $17,000 against the US Dollar. BTC might extend losses if it stays below the $17,450 and $18,500 resistance levels.
Bitcoin Price Analysis
Bitcoin price started a fresh decline below the $20,500 zone. There was a steady decline below the $19,500 and $18,500 support levels.
The decline gained pace below the $17,500 level and the 55 simple moving average (4-hours). The bears even pushed the price below the $16,000 level. The price again tested the $15,500 support zone and is now correcting losses.
There was a minor increase above the $16,000 level. The price is now trading near $16,450 and the 55 simple moving average (4-hours). An immediate resistance on the upside is near the $16,500 level.
There is also a key bearish trend line forming with resistance near $16,500 on the 4-hours chart of the BTC/USD pair. The next major resistance might near the $16,900 zone. It is close to the 23.6% Fib retracement level of the key drop from the $21,479 swing high to $15,510 low.
The first major resistance is near the $17,000 level. A clear move above the $17,000 level might send the price towards $17,500, above which the price might rise towards the 50% Fib retracement level of the key drop from the $21,479 swing high to $15,510 low.
Any more gains might push the price towards the $19,000 zone. If there is no upside break, the price might continue to decline below $16,000. The next key support is near the $15,500 level, below which the price might accelerate lower.
In the stated case, the price could decline towards the $14,200 level. Any more losses might send the price towards the $13,800 level.
Looking at the chart, bitcoin price is clearly trading near $16,500 and the 55 simple moving average (4-hours). Overall, the price could recover, but upsides might be limited above the $17,450 resistance zone.
4 hours MACD – The MACD is now losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now above the 50 level.
Key Support Levels – $16,000 and $15,500.
Key Resistance Levels – $16,500, $17,000 and $17,500.
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