Bitcoin is currently facing significant resistance near $17,000. If the price does not continue to cross this area, the next downward wave of this digital currency will begin in the short term.
To the report News BTC, Bitcoin recently started a new upward movement by discovering a new support at the level of $16,250. In this way, the price first crossed $16,500 and then $16,600.
Buyers continued to push past the resistance of the 100-hour simple moving average (MA 100 – red line in the image), $16,800 and even $17,000, but failed to maintain their positions above this level. The peak price was formed at $17,067 and currently the price is fluctuating within a certain range.
The Bitcoin price candle is now below the 23.6% Fibonacci retracement level and above the 100-hour simple moving average. In this analysis, Fibonacci levels are set based on the upward movement of the price from $16,260 to $17,076.
As can be seen from the image below, an ascending channel has been formed on the Bitcoin chart, whose ceiling resistance is $17,000. If the market trend continues to rise, the ceiling of this channel will act as the first resistance in front of the price. The first key resistance will be $17,200, followed by $17,500.
The $18,000 level could emerge as Bitcoin’s next key resistance, and a break through it would pave the way for a jump to $18,450.
Conversely, if Bitcoin fails to break through $17,000, we should probably expect another drop. In such a situation, $16,800 and the bottom of the ascending channel on the chart will be the closest support ahead of the price.
The next key support will be $16,650 or the same 0.50% Fibonacci retracement level. A break of this support may further lead to a deeper fall of Bitcoin to $16,260 and then $16,000.
The MACD is losing its momentum in the bullish range and the Relative Strength Index (RSI) is above the middle axis (50 level).
As mentioned, $16,800 and $16,650 are key supports for Bitcoin, and $17,000, $17,200, and $17,500 act as resistances.