Bitcoin Price Takes Major Hit: Main Reasons $17K or $16K Are Likely Targets

Bitcoin price faced a major rejection near $21,500 on the daily chart. BTC/USD must stay above $17,000 to avoid more downsides.

Bitcoin(BTC) Price Gains Bearish Momentum

This past week, bitcoin price failed to clear the $21,500 resistance zone. The BTC/USD pair traded as high as $21,470 and started a fresh decline. There was a clear move below the $21,000 and $20,500 support levels.

The recent collapse of FTX triggered a broad market decline. BTC price declined below the $20,000 support zone and the 50-day simple moving average (blue). The decline gained pace below the $19,000 level and the 76.4% Fib retracement level of the upward move from the $18,161 swing low to $21,470 high.

Bitcoin daily chart | Source: BTCUSD on TradingView.com

It traded as low as $18,210 and tested the 1.236 Fib extension level of the upward move from the $18,161 swing low to $21,470 high. BTC recently started an upside correction and there was a recovery wave above the $18,000 level

However, the price faced a strong rejection near the $18,500 zone and bitcoin stayed below the 50-day simple moving average (blue). The price is now moving lower, with an immediate support at $18,000.

The first major support is near the $17,400 and $17,000 levels, below which the price could gain bearish momentum. In the stated case, the price may perhaps test the $16,150 support. It is near the 1.618 Fib extension level of the upward move from the $18,161 swing low to $21,470 high.

On the upside, an immediate resistance is near the $18,850 level. The next key resistance might be near the $19,600 level and the 50 simple moving average (4-hours, blue). A clear move above the $19,600 resistance and $21,000 could start a steady increase.

In the stated case, the price might test the $21,000 resistance. If the bulls push the price above the $21,000 barrier, the price might retest the $21,500 pivot zone.

Overall, bitcoin price is gaining bearish momentum below the $19,600 support. The current daily chart is showing bearish signs and the price might continue to move down towards $16,000. Conversely, the price may perhaps start a fresh upward move towards $19,600 or $20,000.