Bitcoin Price Looks Ready For Another Leg Higher Over $16.5K

Bitcoin price extended its decline and tested the $16,000 support. BTC is forming a base and might soon rise above the $16,500 resistance zone.

• Bitcoin declined further and tested the $16,000 support zone.
• The price is trading below $16,500 and the 100 hourly simple moving average.
• There is a key bearish trend line forming with resistance near $16,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a decent increase if it clears the $16,500 resistance zone.

Bitcoin price started a downside correction from the $16,800 resistance zone. BTC declined below the $16,500 support level and the 100 hourly simple moving average.

The price even moved below the $16,200 level, but the bulls were active near the $16,000 support zone. A low was formed near $16,000 and the price is now consolidating losses. There was a minor increase above the $16,200 level.

Bitcoin price is now trading below $16,500 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $16,500 on the hourly chart of the BTC/USD pair.

On the upside, an immediate resistance is near the $16,300 level. It is near the 50% Fib retracement level of the downward move from the $16,588 swing high to $16,000 low. The first major resistance is near the $16,500 zone, the trend line, and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

The trend line is near the 76.4% Fib retracement level of the downward move from the $16,588 swing high to $16,000 low. A successful move above the $16,500 resistance might start a decent increase. The next major resistance is near $16,800, above which the price could gain pace for a move towards the $17,500 zone.

If bitcoin fails to climb above the $16,500 resistance, it could struggle to stay in a positive zone. An immediate support on the downside is near the $16,130 level.

The next major support is near the $16,000 zone, below which the price decline further. In the stated case, the price might drop towards the $15,500 support zone.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $16,130, followed by $16,000.

Major Resistance Levels – $16,500, $16,800 and $17,000.