Bitcoin Price Rejects $18K, Why There is Risk of Another Drop To $16K
Bitcoin price recovered over $1,500 and climbed above $17,500. BTC failed to clear the $18,000 resistance and started a fresh decline.
Bitcoin started a recovery wave above the $17,000 and $17,200 resistance levels.
The price is trading below $18,500 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $16,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could resume its decline if there is a close below the $16,750 support zone.
Bitcoin Price Faces Key Hurdle
Bitcoin price declined heavily below the $18,000 support zone. FTX’s fall is still hurting the market and there was a strong decline towards the $16,000 support zone.
The price traded as low as $15,555 and recently started an upside correction, similar to ethereum, bnb, and ripple. There was a steady recovery wave above the $16,500 and $17,000 resistance levels. The price climbed above the 23.6% Fib retracement level of the main decline from the $20,670 swing high to $15,555 low. There is also a key bullish trend line forming with support near $16,900 on the hourly chart of the BTC/USD pair.
Bitcoin price also moved above the $17,500 level, but it struggled near the $18,000 resistance zone. The 50% Fib retracement level of the main decline from the $20,670 swing high to $15,555 low also acted as a strong resistance.
It is now trading below $18,500 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $17,400 level. The first major resistance is near the $18,000 level.
A clear move above the $18,000 resistance might push the price further higher. The next major resistance is near $18,500 or the 100 hourly simple moving average, above which the price could test the $20,000 zone.
More Losses in BTC?
If bitcoin fails to start a recovery wave above the $18,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $16,900 level and the trend line.
The next major support is near the $16,750 zone. A clear move below the $16,750 support might push the price further lower. In this case, the price may perhaps decline towards the $16,000 support zone.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $16,900, followed by $16,750.
Major Resistance Levels – $17,400, $18,000 and $18,500.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.