February 4, 2023
Bitcoin News

Bitcoin Price Prediction: This Scenario Will Trigger A Fresh Drop

Bitcoin price struggled to clear the $16,800 resistance. BTC is moving lower and there is a risk of more losses below the $16,000 support zone.

Bitcoin attempted an upside break above the $16,800 resistance, but failed. The price is trading below $16,500 and the 100 hourly simple moving average. There is a major bearish trend line forming with resistance near $16,550 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could continue to decline if it breaks the $16,000 support zone. Bitcoin Price Faces Rejection

Bitcoin price attempted an upside break above the $16,800 resistance zone. BTC struggled to gain pace for a move above the $16,800 resistance and formed a double top pattern.

There was a slow and steady decline from the $16,791 high. There was a move below the $16,500 and $16,400 levels. The bears were able to push the price below the 23.6% Fib retracement level of the upward move from the $15,470 swing low to $16,790 high.

Bitcoin price is now trading below $16,500 and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $16,550 on the hourly chart of the BTC/USD pair.

The price is now consolidating near the 50% Fib retracement level of the upward move from the $15,470 swing low to $16,790 high. On the upside, an immediate resistance is near the $16,300 level.

Source: BTCUSD on TradingView.com

The first major resistance is near the $16,500 zone, the 100 hourly simple moving average, and the highlighted bearish trend line. A successful move above the $16,500 resistance might send the price further higher. The next major resistance is near $16,800, above which the price could gain pace for a move towards the $17,500 zone.

More Losses in BTC?

If bitcoin fails to climb above the $16,500 resistance, it could continue to move down. An immediate support on the downside is near the $16,100 level.

The next major support is near the $16,000 zone, below which the price might gain bearish momentum. 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 bearish zone.

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

Major Support Levels – $16,100, followed by $16,000.

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