Bitcoin price is signaling a negative bias below $17,000. BTC/USD could accelerate lower if the bulls fail to protect the $16,580 support zone.
Bitcoin Price Signals Fresh Decline
Recently, bitcoin price saw a bearish reaction from the $18,400 zone. The BTC/USD pair topped near $18,391 and started a fresh decline. There was a sharp decline below the $18,000 support zone, dragging ethereum and other altcoins lower.
The price decline below the $17,500 support and the 50 simple moving average (4-hours, blue). During the drop, the price traded below a crucial bullish trend line with support at $17,180 on the 4-hours chart.
Bitcoin price 4-hours chart | Source: BTCUSD on TradingView.com
The bears were able to push the price below the 50% Fib retracement level of the upward move from the $15,487 swing low to $18,391 high. Finally, the price found support near the $16,600 zone.
It tested the 61.8% Fib retracement level of the upward move from the $15,487 swing low to $18,391 high. Bitcoin price is now consolidating losses above the $16,600 zone and is well below the 50 simple moving average (4-hours, blue).
On the downside, the first major support is near the $16,580 level. The next key support sits near the $16,170 level. A clear move below the $16,170 support could start another major decline towards the $15,500 support zone. Any more losses may perhaps send the price towards $15,000.
On the upside, an immediate resistance is near the $16,940 level. The first major resistance is near the $17,200 level and the 50 simple moving average (4-hours, blue).
A clear move above the $17,200 level might start a decent increase towards the $17,500 level. The next major resistance is near the $18,000 zone. Any more gains might send the price towards the $18,400 resistance zone, above which the price could gain bullish momentum for a larger increase.
Overall, bitcoin price is showing a few bearish signs below the $17,000 support level. If there is a close below the $16,580 support level, the price could accelerate further lower. Conversely, the price might start a recovery wave and test the $17,200 resistance in the near term.
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