This Scenario Will Trigger A Fresh Drop

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Bit­coin price strug­gled to clear the $16,800 resis­tance. BTC is mov­ing low­er and there is a risk of more loss­es below the $16,000 sup­port zone.

  • Bit­coin attempt­ed an upside break above the $16,800 resis­tance, but failed.
  • The price is trad­ing below $16,500 and the 100 hourly sim­ple mov­ing average.
  • There is a major bear­ish trend line form­ing with resis­tance near $16,550 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 Faces Rejection

Bit­coin price attempt­ed an upside break above the $16,800 resis­tance zone. BTC strug­gled to gain pace for a move above the $16,800 resis­tance and formed a dou­ble top pattern.

There was a slow and steady decline from the $16,791 high. There was a move below the $16,500 and $16,400 lev­els. The bears were able to push the price below the 23.6% Fib retrace­ment lev­el of the upward move from the $15,470 swing low to $16,790 high.

Bit­coin price is now trad­ing below $16,500 and the 100 hourly sim­ple mov­ing aver­age. There is also a major bear­ish trend line form­ing with resis­tance near $16,550 on the hourly chart of the BTC/USD pair.

The price is now con­sol­i­dat­ing near the 50% Fib retrace­ment lev­el of the upward move from the $15,470 swing low to $16,790 high. On the upside, an imme­di­ate resis­tance is near the $16,300 level.

Bitcoin Price

Source: BTCUSD on TradingView.com

The first major resis­tance is near the $16,500 zone, the 100 hourly sim­ple mov­ing aver­age, and the high­light­ed bear­ish trend line. A suc­cess­ful move above the $16,500 resis­tance might send the price fur­ther high­er. The next major resis­tance is near $16,800, above which the price could gain pace for a move towards the $17,500 zone.

More Losses in BTC?

If bit­coin fails to climb above the $16,500 resis­tance, it could con­tin­ue to move down. An imme­di­ate sup­port on the down­side is near the $16,100 level.

The next major sup­port is near the $16,000 zone, 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 – $16,100, fol­lowed by $16,000.

Major Resis­tance Lev­els – $16,500, $16,800 and $17,000.

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