Bitcoin price rose and was able to clear $16,500. BTC needs to settle above $17,000 to start a real near-term rally.
- Bitcoin started an upward correction and broke above the $16,500 resistance.
- The price is trading above $16,400 and the 100 hourly simple moving average.
- There was a break above a major bearish trendline with resistance near $16,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might continue higher if it settles above the $17,000 resistance zone.
Bitcoin price recovers
Bitcoin price has formed a decent support base above the $15,500 support zone. BTC remained well bid and started an upward correction above the $16,000 resistance.
There was a clear move above the 50% Fib retracement level from the main swing decline from the $16,795 low to $15,470 low. Additionally, there was a break above a major bearish trend line with resistance near $16,220 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading above $16,400 and the 100 hour simple moving average. It is also well above the 76.4% Fib retracement level of the main swing decline from the $16,795 swing low to $15,470 low.
On the upside, an immediate resistance is near the $16,800 level. The first major resistance is near the $17,000 area. A successful daily close above the $17,000 resistance could trigger a real wave of recovery. The next major resistance is near $17,500, above which price may gain momentum for a move towards the $18,000 area.
Source: BTCUSD on TradingView.com
An intermediate resistance could be $17,650. It is near the 1.618 Fib extension level of the main swing decline from the $16,795 swing low to the $15,470 low.
New drop in BTC?
If bitcoin fails to settle above the $17,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $16,500 level and a connecting bullish trendline on the same chart.
The next major support is near the $16,250 area and the 100 hourly simple moving average, below which the price could pick up some bearish momentum. In the indicated case, the price could drop towards the $15,500 support zone.
Hourly MACD – The MACD is now accelerating into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Main support levels – $16,500, followed by $16,250.
Main resistance levels – $16,800, $17,000 and $18,000.