Bitcoin price has dropped below a key support level at $17,600 after a period of consolidation around this level. This could be a sign that further weakness is ahead in the short-term, with a move towards the $16,000 region possible.
The recent drop comes as Bitcoin failed to sustain a move above the $19,000 level, with the cryptocurrency now trading around $17,200 at the time of writing.
The key support level to watch is now at $16,000, which is where Bitcoin found buyers on two occasions in November. A break below this level could open up a move towards the $14,000 region.
On the other hand, if Bitcoin can find support at $17,000 and move back above $18,000, it could signal that the bulls are still in control and a move toward all-time highs is possible.
However, it’s worth noting that Bitcoin has broken key support at $17,600 and this could be a sign that further weakness is ahead in the short term. A move below the $16,000 level cannot be ruled out.
What does technical indicators suggest about BTC?
The recent drop below the key support level at $17,600 suggests that further weakness could be ahead in the short-term. However, the longer-term outlook for short termmains bullish, with the cryptocurrency still well above the 200-day MA. Further gains could be on the cards if Bitcoin can move back above the $19,000 level in the near term.
At the moment, the short-term technical indicators are bearish on Bitcoin, with the RSI (Relative Strength Index) falling below 50 and the MACD (Moving Average Convergence Divergence) turning bearish.
The longer-term outlook remains bullish, however, with Bitcoin still well above the 200-day MA (Moving Average). Further gains could be on the cards if Bitcoin can move back above the $19,000 level in the near term.
Conclusion
The recent drop in Bitcoin price below the $17,600 level is a bearish development and could signal further weakness in the short term. A break below $16,000 could open up a move towards the $14,000 region. On the other hand, if Bitcoin can find support at $17,000 and move back above $18,000, it could signal that the bulls are still in control.
