What could trigger a further increase

[ad_1]

Bitcoin price started a downward correction from the resistance at $17,500. BTC is trading above the $16,800 support and could start a fresh rise.

Bitcoin tested the $16,800 support zone and traded as low as $16,888. The price is trading near $17,000 and the 100 hourly simple moving average. There was a break above a key contracting triangle with resistance near $17,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair needs to stay above the $16,800 support to start a fresh rise. Bitcoin Price Holds Key Support

Bitcoin price attempted another rise above the $17,500 resistance zone. However, BTC failed to gain strength above the $17,400 level. A high was formed near $17,440 before there was a downside correction.

There was a move below the $17,200 support zone and the 100 hourly simple moving average. However, the bulls were active above the $16,800 support zone. A bottom has formed near $16,888 and the price is now consolidating losses.

There was a slight increase above the $17,000 level. Bitcoin price is now trading near $17,000 and the 100 hourly simple moving average. Additionally, there was a break above the 23.6% Fib retracement level of the recent fall from the $17,440 high to $16,888 high.

There was also a break above a key contracting triangle with resistance near $17,000 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $17,170 level. It is near the 50% Fib retracement level of the recent swing decline from the $17,440 swing low to $16,888 low.

The first major resistance is seen near the $17,200 area, above which the price could perhaps begin another steady rise. In the indicated case, the price could rise towards the resistance at $17,450. The next major resistance is near $17,500, above which price rises towards the near-term $18,000 area.

More losses in BTC?

If bitcoin fails to start a fresh rise above the $17,170 resistance, there could be more downside. An immediate support on the downside is near the $16,880 level.

The next major support is near the $16,800 area. A break down below the $16,800 support could lead to a decline towards $16,500. Any further losses may require a test of the key near-term $16,000 support area.

Technical indicators:

Hourly MACD The MACD is now losing momentum in the bullish zone.

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

Main support levels $16,800, followed by $16,500.

Major resistance levels $17,170, $17,200 and $17,500.

[ad_2]