Bitcoin Price Faces Rejection, Why BTC Could Resume Its Downtrend

Bit­coin price strug­gled to clear the $17,000 resis­tance. BTC seems to be form­ing a dou­ble top pat­tern and might dive below the $16,000 support.

• Bit­coin attempt­ed an upside break above the $17,000 resis­tance, but failed.
• The price is trad­ing above $16,300 and the 100 hourly sim­ple mov­ing average.
• There was a break below a key bull­ish trend line with sup­port near $16,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could con­tin­ue to decline if it breaks the $16,000 sup­port zone.

Bitcoin Price Struggle Continues

Bit­coin price attempt­ed a recov­ery wave from the $15,500 sup­port zone. BTC climbed above the $16,000 and $16,500 resis­tance levels.

It even set­tled above the $16,300 lev­el and the 100 hourly sim­ple mov­ing aver­age. How­ev­er, the bears were active near the $16,800 zone. It seems like the price faced anoth­er major rejec­tion near the $16,800 lev­el and is form­ing a dou­ble top pattern.

Bit­coin price start­ed a fresh decline from the $16,800 zone. There was a break below a key bull­ish trend line with sup­port near $16,420 on the hourly chart of the BTC/USD pair.

It is now approach­ing the 23.6% Fib retrace­ment lev­el of the recent increase from the $15,470 swing low to $16,791 high. Besides, it is trad­ing above $16,300 and the 100 hourly sim­ple mov­ing aver­age. On the upside, an imme­di­ate resis­tance is near the $16,600 level.

Source: BTCUSD on TradingView.com

The first major resis­tance is near the $16,800 zone. A suc­cess­ful move above the $16,800 resis­tance might start a real recov­ery wave. The next major resis­tance is near $17,000, above which the price could gain pace for a move towards the $17,500 zone.

Fresh Decline in BTC?

If bit­coin fails to climb above the $16,800 resis­tance, it could con­tin­ue to move down. An imme­di­ate sup­port on the down­side is near the $16,280 lev­el and the 100 hourly sim­ple mov­ing average.

The next major sup­port is near the $16,130 zone or the 50% Fib retrace­ment lev­el of the recent increase from the $15,470 swing low to $16,791 high, below which the price might gain bear­ish momen­tum. In the stat­ed case, the price might drop towards the $15,500 sup­port zone.

Tech­ni­cal indicators:

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 – $16,280, fol­lowed by $16,130.

Major Resis­tance Lev­els – $16,800, $17,000 and $18,000.