Bitcoin price fell sharply but found support against the US dollar near $ 16,300. BTC is likely forming a double floor pattern and could rally if it clears $ 17,500.
- Bitcoin holds the support zone of $ 16,300 and is trading above $ 17,000.
- The price is meeting strong resistance near $ 17,500 and is well below the 100-hour simple moving average.
- A key bearish trendline is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 17,500.
- One possible double bottom pattern is looming with support near $ 16,300.
Bitcoin price should rise again
Bitcoin price fell sharply below the $ 18,000 and $ 17,200 levels. BTC even rose below $ 16,500 before the bulls protected the $ 16,300 support zone.
There were two attempts by the bears to push the price below $ 16,300 and $ 16,200, but they failed. A swing low is being formed near $ 16,219 and the price is currently rising. It is trading above the 23.6% fib retracement level of the recent decline from the high of $ 19,500 to the low of $ 16,219.
It appears that a possible double bottom pattern is looming with support near $ 16,300. Breakout resistance is forming near the $ 17,500 level.
Source: BTCUSD on TradingView.com
A key bearish trendline is also forming on the hourly chart of the BTC / USD pair with resistance near USD 17,500. The next major resistance is near the $ 17,850, or 50% fib retracement level of the recent decline from the $ 19,500 swing high to the $ 16,219 low.
Bitcoin price is likely to rise sharply if it clears the breakout resistance at $ 17,500 and then gains pace above $ 17,850. The next big resistance is near the $ 18,400 level or the 100-hour simple moving average.
Error in BTC?
If Bitcoin fails to hit the breakout resistance of USD 17,500, it risks falling again. Initial support on the downside is near the $ 16,800 level.
The first major support is near the $ 16,500 level. The main support is near the raised floor zone at $ 16,300. A daily close below the $ 16,300 and $ 16,200 levels could open the doors to one more slide.
Hourly MACD – The MACD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently recovering and approaching the 50 level.
Major Support Levels – $ 16,800 followed by $ 16,300.
Main Resistance Levels – $ 17,500, $ 17,850, and $ 18,400.