New Delhi(CoinChapter.com): Bitcoin price is consolidating above the $16,000 level. BTC/USD bulls must gain strength above $17,000 to avoid another sharp decline.
Bitcoin Price Takes Hit
This past week, we saw a sharp decline in bitcoin, ethereum, sol and xrp after FTX’s collpase. The BTC/USD gained bearish momentum below the $20,000 support zone.
There was a strong decline below the $18,500 and $18,000 support levels. The bears even pushed the price below the $17,200 level and the price settled well below the 50 simple moving average (4-hours, blue). Finally, the bulls appeared near the $15,600 and $15,700 levels.
The recent swing low was formed near $15,822 and the price is now correcting losses. There was an increase above the $16,200 and $16,500 levels.
The price climbed above the 23.6% Fib retracement level of the downward move from the $18,356 swing high to $15,822 low. However, the price is still well below the $18,000 level and the 50 simple moving average (4-hours, blue).
On the upside, an immediate resistance is near the $16,850. There is also a key bearish trend line forming with resistance near $16,880 on the 4-hours chart.
The first major resistance is near the $17,000 level. It is close to the 50% Fib retracement level of the downward move from the $18,356 swing high to $15,822 low. The next major resistance is near the $17,250 zone. A clear move above the $17,250 level might start a decent increase.
In the stated case, the price could rise steadily towards the $18,000 resistance. Any more gains could set the pace for a test of the $20,000 resistance.
If there is no upside break above $17,000, the price could decline again. The first major support is near the $16,350 and $16,200 levels.
The next substantial and crucial support sits near the $15,800 level. A clear move below the $15,800 support could trigger another nasty decline. In the stated case, the price may perhaps decline towards the $14,500 zone.
Overall, bitcoin price is attempting a recovery wave from the $15,800 support. A close above the $17,250 level could pump the price towards $18,000 or even $22,000. Conversely, the price might start a fresh decline towards the $14,500 support.
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