Bitcoin price is recovering above $16,600 against the US Dollar. BTC might extend its recovery if it stays above the $16,750 support zone.
Bitcoin Price Analysis
Bitcoin price remained well supported near the $16,000 zone. The price formed a base and started a recovery wave above the $16,200 level.
There was a recovery wave above the $16,500 resistance zone and the 55 simple moving average (4-hours). The pair even cleared the $17,000 resistance zone. However, the bears appeared near the $17,420 zone. A high is formed near $17,424 and the price is now consolidating gains.
There was a move below the 23.6% Fib retracement level of the upward move from the $15,992 swing low to $17,424 high. It is now trading above $16,600 and the 55 simple moving average (4-hours).
An immediate resistance on the upside is near the $17,200 level. The next major resistance might near the $17,425 zone. A clear move above the $17,425 level might send the price towards $18,000, above which the price might rise towards the $18,500 resistance.
Any more gains might push the price towards the $19,000 zone. If there is no upside break, the price might start a fresh decline below $16,800. There is also a key bullish trend line forming with support near $16,800 on the 4-hours chart of the BTC/USD pair.
The first major support is near the $16,700 level or the 50% Fib retracement level of the upward move from the $15,992 swing low to $17,424 high.
The next key support is near the $16,200 level, below which the price might accelerate lower. In the stated case, the price could decline towards the $15,850 level. Any more losses might send the price towards the $15,000 level.
Bitcoin Price
Looking at the chart, bitcoin price is clearly trading above $16,600 and the 55 simple moving average (4-hours). Overall, the price could recover further if it clears the $17,420 resistance zone.
Technical Indicators
4 hours MACD – The MACD is now gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is now above the 50 level.
Key Support Levels – $16,800 and $16,200.
Key Resistance Levels – $17,200, $17,425 and $18,500.
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