• Bitcoin price is still facing resistance below $17,000 and could decline heavily if there is a clear move below the $16,000 support zone.
• BTC is showing bearish signs below the $16,800 and $17,000 resistance levels and is trading above $16,500 and the 100 hourly simple moving average.
• There was a break above a key bearish trend line with resistance near $16,550 on the hourly chart of the BTC/USD pair.
Bitcoin prices remain in a downtrend and have failed to break through the $17,000 resistance level. This has led to a bearish sentiment, with traders worried that BTC could decline heavily if it fails to break the $16,000 support zone.
At the time of writing, Bitcoin is trading just above the $16,500 level and the 100 hourly simple moving average. Bulls were able to push the price above a key bearish trend line with resistance near $16,550 on the hourly chart of the BTC/USD pair. This allowed a minor recovery wave, but bears were able to prevent further upside.
The price dropped below the 23.6% Fib retracement level of the upward move from the $16,325 low to $16,683 high. It found support near the $16,500 level and is currently trading above the 50% Fib retracement level.
On the upside, an immediate resistance is near the $16,600 level. Above this, the first major resistance is near the $16,680 zone. The next major resistance is near the $16,800 and $17,000 levels. If the price breaks above the $17,000 level, it could start a strong rally.
Conversely, if there is a clear move below the $16,000 support zone, the price could decline heavily. The next major support is near the $15,600 level.
Overall, Bitcoin remains in a downtrend below the $17,000 level. To start a strong uptrend, the price must break the $17,000 resistance. If not, the bears may take control and the price could decline further.