Bitcoin Price Shows Signs of Reversal But This Resistance Is The Key

Key Takeaways:

  • Bitcoin price is slowly moving higher above the $16,500 zone.
  • BTC/USD cleared a connecting bearish trend line with resistance near $16,850 on the 4-hours chart.
  • The price must clear the $17,000 hurdle for a sustained move higher.
Bitcoin Price Shows Signs of Reversal But This Resistance Is The Key
Bitcoin Price Stuck In Range | Photo by Quantitatives on Unsplash

New Delhi(Coinchapter.com): Bitcoin price is attempting an upside break above $16,800. BTC/USD could start a decent increase if there is a clear move above $17,000.

Bitcoin Price Stuck In Range

After a major decline, Bitcoin price found support near the $16,250 zone. The BTC/USD pair formed a base and started a decent increase above the $16,600 level. The price settled above the $16,600 level to move into a bullish zone, like ethereum.

The price climbed above the $16,800 level and the 50 simple moving average (4-hours, blue). During the increase, the price cleared a connecting bearish trend lien with resistance near $16,850 on the 4-hours chart.

bitcoin, Bitcoin Price Shows Signs of Reversal But This Resistance Is The Key
Bitcoin price 4-hours chart | Source: BTCUSD on TradingView.com

The bulls were able to push the price above the 23.6% Fib retracement level of the downward move from the $18,391 swing high to $16,261 low.

On the upside, an immediate resistance is near the $16,960 level. The first major resistance is near the $17,000 level. A clear move above the $17,000 level might start a decent increase towards the $17,320 level.

The 50% Fib retracement level of the downward move from the $18,391 swing high to $16,261 low is also near the $17,320 zone to act as a hurdle. The next major resistance is near the $17,580 zone.

Any more gains might send the price towards the $17,580 resistance zone, above which the price could start a major increase in the coming sessions. In the stated case, the price could rise steadily towards the $18,00 level.

Range Moves?

On the downside, the first major support is near the $16,680 level and the 50 simple moving average (4-hours, blue). The next key support sits near the $16,600 level. A clear move below the $16,600 support could spark a bearish move.

The next major support is near the $16,250 support zone. Any more losses may perhaps send the price towards $15,500. 

Overall, bitcoin price is attempting an upside break above the $17,000 and $17,320 resistance zone. If there is a close below the $17,320 support level, the price could start a strong increase. Conversely, the price might start another drop and revisit the $16,260 support zone.

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bitcoin, Bitcoin Price Shows Signs of Reversal But This Resistance Is The Key

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