Bitcoin Price Topside Bias Vulnerable If It Continues To Struggle Below $17K

Bitcoin price declined further and traded below $16,500. BTC is correcting losses, but it could struggle to climb above the $16,700 and $17,000 resistance levels.

• Bitcoin extended its decline below the $17,000 and $16,500 support levels.
• The price is trading below $16,800 and the 100 hourly simple moving average.
• There is a connecting bearish trend line forming with resistance near $16,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could resume its decline unless there is a clear move above $17,000 and the 100 hourly SMA.

Bitcoin price settled below the $17,200 support level to move into a bearish zone. BTC gained pace below the $17,000 and $16,800 support levels. The price even declined below the $16,500 support and settled below the 100 hourly simple moving average.

It tested the $16,200 zone. A low is formed near $16,260 and the price is now correcting losses. There was a minor increase above the $16,500 resistance zone. The price climbed above the 50% Fib retracement level of the recent drop from the $16,865 swing high to $16,260 low.

Bitcoin price is now trading below $16,800 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $16,650 zone. There is also a connecting bearish trend line forming with resistance near $16,650 on the hourly chart of the BTC/USD pair.

The trend line is near the 61.8% Fib retracement level of the recent drop from the $16,865 swing high to $16,260 low. The first major resistance is near the $16,800 zone and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

A clear move above the $16,800 resistance might call for a move towards the $17,000 resistance. The next major resistance is near $17,240, above which the price might gain pace and rise towards the $18,000 level.

If bitcoin fails to clear the $16,800 resistance, there could be more downsides. An immediate support on the downside is near the $16,400 level.

The next major support is near the $16,250 zone. A downside break below the $16,250 support might call for a drop towards the $16,000 level. Any more losses might send the price towards $15,500.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

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

Major Support Levels – $16,250, followed by $16,000.

Major Resistance Levels – $16,650, $16,800 and $17,000.