New Delhi(Coinchapter.com): Bitcoin price is showing bearish signs below $17,000 on the daily chart. BTC/USD must stay above $15,500 to avoid more downsides.
Bitcoin Price Turns Red
This past week, bitcoin price found support near the $15,500 zone. The BTC/USD pair seems to be forming a short-term double bottom pattern near the $15,500 zone, but the price action suggests lack of momentum.
The last swing low was formed near $15,487 before the price started a consolidating phase. The price attempted a minor recovery wave above the $16,000 resistance zone, but it remained well below the 50-day simple moving average (blue).
Bitcoin price daily chart | Source: BTCUSD on TradingView.com
There was a minor increase above the $16,500 resistance zone. The price even tested the 23.6% Fib retracement level of the main drop from the $21,470 swing high to $15,485 zone.
On the upside, an immediate resistance is near the $16,500 level. There is also a key bearish trend line forming with resistance near $16,500 on the daily chart. The next key resistance might be near the $18,500 level and the 50 simple moving average (4-hours, blue).
The 50% Fib retracement level of the main drop from the $21,470 swing high to $15,485 zone is also near the $18,500 zone. A clear move above the $18,500 resistance and $18,800 could start a steady increase.
In the stated case, the price might test the $19,600 resistance. If the bulls push the price above the $19,600 barrier, the price might retest the $20,000 pivot zone.
If there is no upside break above $17,000, the price might continue to move down. An immediate support is near the $16,000 level. The first major support is near the $15,500 and $15,450 levels, below which the price could gain bearish momentum.
In the stated case, the price may perhaps test the $15,000 support. Any more losses might open the doors for a drop towards the $14,000 level.
Overall, bitcoin price is gaining bearish momentum below the $16,500 support. The current daily chart is showing bearish signs and the price might continue to move down towards $15,000. Conversely, the price may perhaps start a fresh upward move towards $18,500 or $20,000.
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