• Bitcoin price is still trading in a range below the $17,000 resistance.
• There was a break below a major bullish trend line with support near $16,840 on the hourly chart of the BTC/USD pair.
• The pair could decline further if there is a clear move below the $16,550 support zone.
The cryptocurrency market has been in an exciting state as of late, with Bitcoin price continuing to remain in a range below the $17,000 resistance. Currently, the price is trading below $16,800 and the 100 hourly simple moving average. Recently, there was a break below a major bullish trend line with support near $16,840 on the hourly chart of the BTC/USD pair. If the current trend continues, the pair could decline further if there is a clear move below the $16,550 support zone.
Bitcoin made another attempt to clear the $17,000 resistance zone but failed to gain enough momentum to make a decisive move. As a result, the price has been trading in a range below the resistance level. However, the bulls managed to defend the $16,800 support and the 100 hourly simple moving average, preventing any major decline.
Unfortunately, the bears were able to take control and drive the price below the $16,840 support level. There was also a break below a major bullish trend line with support near $16,840 on the hourly chart of the BTC/USD pair. As a result, the pair tested the key $16,550 support zone. A low is formed near $16,561 and the price is now consolidating losses. It tested the 23.6% Fib retracement level of the downward move from the $16,962 swing high to $16,561 low.
On the upside, an immediate resistance is near the $16,720 zone. The first major resistance is near the $16,800 zone and the 100 hourly SMA. It is close to the 61.8% Fib retracement level of the downward move from the $16,962 swing high to $16,561 low. The main barrier is still near the $17,000 zone. If the bulls are able to break the $17,000 barrier, the price could start a strong rally. On the other hand, a clear break below the $16,550 support zone could start a bearish wave in Bitcoin. If so, the price could decline towards the $16,000 level in the near term.
