29 February, 2024



Bitcoin Price Drops Below Key Support at $17.6K, Further Weakness Expected

1 year ago

22 Nov, 2023

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.

Source: Tradingview

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.

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