Bitcoin price could avoid another downtrend if it closes above a key level

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Bitcoin price extended its decline below the $17,000 level. BTC could avoid a major downside if it closes above the $17,000 resistance zone.

Bitcoin remained in a bearish zone and traded below the $17,000 support. The price is trading below $17,000 and the 100 hourly simple moving average. A key bearish trend line is forming with resistance near $16,920 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is showing some bearish signs below the $17,000 pivot level. Bitcoin Price Shows Bearish Signs

Bitcoin price failed to stay in a positive zone above the $17,000 pivot level. BTC bears were active and there was a push below the $16,800 support zone.

The price tested the $16,700 level and settled below the 100 hourly simple moving average. A bottom forms near $16,700 and the price is now consolidating losses. There was a slight increase above the $16,800 resistance level.

Bitcoin price broke above the 23.6% Fib retracement level of the recent decline from the $17,130 low to $16,700 high. It is now trading below $17,000 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $16,920 on the hourly chart of the BTC/USD pair.

On the upside, an immediate resistance is near the $16,920 level and the downtrend line. It is near the 50% Fib retracement level of the recent decline from the $17,130 high to $16,700 low.

The first major resistance is found near the $17,000 area, above which the price could perhaps begin another steady rise. In the indicated case, the price could rise towards the resistance at $17,200. The next major resistance is near $17,450, 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 $17,000 resistance, there could be more downside. Immediate support on the downside is near the $16,700 level.

The next major support is near the $16,500 area. A downside break below the $16,500 support could lead to a decline towards $16,000. Any further losses could push the price towards the pivot zone of $15,500 in the near term.

Technical indicators:

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

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

Main support levels $16,700, followed by $16,500.

Major resistance levels $16,920, $17,000 and $17,200.

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