Bitcoin price started a downward correction from the $17,000 resistance. BTC found support near $16,750 and could soon attempt a bullish breakout above $17,000.
- Bitcoin is showing bullish signs above the $16,600 and $16,750 levels.
- The price is trading above $16,750 and the 100 hourly simple moving average.
- A crucial uptrend line is forming with support near $16,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a strong rally if there is a close above the $17,000 resistance.
Bitcoin Price Remains Supported
Bitcoin price tried a decent upward move above the $16,800 resistance level. BTC even shot up towards the $17,000 resistance zone, but there was no clear bullish breakout.
A high was formed near $16,987 and the price began a downward correction. There was a move below the $16,800 support zone. The price dipped below the 50% Fibonacci retracement level of the up move from the $16,615 low to $16,987 high.
However, the bitcoin price found support near the $16,750 level. The 61.8% Fib retracement level of the up move from the $16,615 low to $16,987 high is acting as support.
There is also a crucial uptrend line forming with support near $16,750 on the hourly chart of the BTC/USD pair. The pair is stable above $16,750 and the 100 hour simple moving average. To the upside, immediate resistance is near the $16,900 level.
Fountain: BTCUSD on TradingView.com
The next major resistance is near the $17,000 area. A clear move and close above the $17,000 resistance could start a strong rally in the near term. In the indicated case, the price perhaps goes towards the $17,550 level. More gains could require a move towards the $18,000 level.
Dips supported in BTC?
If the bitcoin price fails to break above the $17,000 resistance, a downward correction could begin. An immediate support on the downside is near the $16,800 level.
The next big support is near the $16,750 level and the trend line. A break below the $16,750 support could send the price looking towards the $16,500 level. More losses could require a test of $16,350.
Technical indicators:
Hourly MACD – The MACD is now picking up pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Main support levels: $16,750, followed by $16,700.
Main resistance levels: $16,900, $17,000 and $17,500.
