Bitcoin price declined sharply and traded below $17,000. BTC is consolidating losses and remains at risk of further losses below the $16,500 support.

Bitcoin began a fresh decline below the $17,200 and $17,000 support levels. The price is trading below $17,000 and the 100 hourly simple moving average. A key downtrend line is forming with resistance near $16,800 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could continue to move lower unless it breaks above the 100 hourly SMA.

Bitcoin price falls

Bitcoin price restarted a fresh decline from the $18,400 zone resistance zone. BTC gained pace below the $17,500 and $17,200 support levels. The bears even pushed it below the $17,000 level and the 100 hourly simple moving average.

It tested the $16,500 support zone. A low is formed near $16,541 and the price is now consolidating losses. It rallied a few more points and traded above the $16,700 level.

Bitcoin price is now trading below $17,000 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $16,800 area. There is also a key downtrend line forming with resistance near $16,800 on the hourly chart of the BTC/USD pair.

The first major resistance is near the $17,000 zone and the 100 hourly simple moving average. It is near the 23.6% Fib retracement level of the move down from the $18,387 high to $16,541 low.

Source: BTCUSD on TradingView.com

A clear move above the $17,000 resistance could require a move towards the $17,500 resistance. It is near the 50% Fib retracement level of the move down from the $18,387 high to $16,541 low. The next major resistance is near $17,800, above which the price could accelerate and rally towards the $18,000 level.

More losses in BTC?

If bitcoin fails to clear the $17,000 resistance, there could be more downside. An immediate support on the downside is near the $16,600 level.

The next big support is near the $16,500 area. A break below the $16,500 support could trigger further losses. In the indicated case, the price could drop towards the $16,000 support in the near term. More losses could send the price to $15,500.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Main support levels: $16,600, followed by $16,500.

Major resistance levels: $16,800, $17,000 and $17,500.



This post Bitcoin price prints a bearish technical pattern, why it could continue lower

was published first on https://newsbtc.com/analysis/btc/bitcoin-price-bearish-16-5k/

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