This week, the majority of cryptocurrencies are in a bearish zone and trading with major losses. Bitcoin (BTC) is no exception and it even tumbled below the $16,500 support area. BTC/USD traded close to the $15,500 support level and later started a short-term upside correction.
Over the past few weeks, we’ve seen Bitcoin prices plummet as investors grow increasingly concerned about market volatility. While many other exchanges have struggled to keep up during this period of turmoil, Binance has remained strong and continued to see growth in its Bitcoin reserves. Binance now holds more Bitcoin than any other exchange, a sign that it is well-positioned for the future of cryptocurrency trading.
The price moved above the $16,000 level and the 100 hourly SMA. However, it failed to gain momentum above the 23.6% Fib retracement level of the last slide from the $17,452 high to the $15,513 low.
As a result, there was a downside correction below $16,200 and the 100 hourly SMA. The price even broke the $15,800 support level and traded close to the last swing low at $15,513. Recently, there was a short-term spike above the 50% Fib retracement level of the last slide from the $17,452 high to the $15,513 low.
Bitcoin price is currently trading around $16,000 and it is likely preparing for the next move. If the price can resume its upside above $16,200 and $16,500, there could be an increase towards a major resistance near the $17,000 level. The first key resistance is near the $16,890 level and a connecting bearish trend line.
The 61.8% Fib retracement level of the last slide from the $17,452 high to the $15,513 low is also close to the trend line resistance at $16,905. Therefore, if there is an upside break above that zone, it could start a decent increase toward $18,000. The next major resistance is near the $18,784 and $19,000 levels.
Conversely, if there is no upside break above the $16,500 level in bitcoin price, it could start another decline. Initial support is at $15,900, below which BTC/USD may revisit the last swing low near $15,500.
Conclusion
Bitcoin price seems to be preparing for the next move, as it is holding the above key supports. If BTC can break the $16,500 resistance area and gain bullish momentum, it could rally towards the $18,000 level in the coming days.
