Bitcoin price started a downside correction from the $17,000 resistance. BTC found support near $16,750 and might soon attempt an upside break above $17,000.

Bitcoin is showing bullish signs above the $16,600 and $16,750 levels.
The price is trading above $16,750 and the 100 hourly simple moving average.
There is a crucial bullish trend line forming with support near $16,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a strong increase if there is a close above the $17,000 resistance.

Bitcoin Price Remains Supported

Bitcoin price attempted a decent upward move above the $16,800 resistance level. BTC even spiked towards the $17,000 resistance zone, but there was no clear upside break.

A high was formed near $16,987 and the price started a downside correction. There was a move below the $16,800 support zone. The price declined below the 50% Fib retracement level of the upward move from the $16,615 swing low to $16,987 high.

However, bitcoin price found support near the $16,750 level. The 61.8% Fib retracement level of the upward move from the $16,615 swing low to $16,987 high is acting as a support.

There is also a crucial bullish trend line forming with support near $16,750 on the hourly chart of the BTC/USD pair. The pair is stable above $16,750 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $16,900 level.

Source: BTCUSD on TradingView.com

The next major resistance is near the $17,000 zone. A clear move and close above the $17,000 resistance might start a strong increase in the near term. In the stated case, the price may perhaps rise towards the $17,550 level. Any more gains might call for a move towards the $18,000 level.

Dips Supported in BTC?

If bitcoin price fails to clear the $17,000 resistance, it could start a downside correction. An immediate support on the downside is near the $16,800 level.

The next major support is near the $16,750 level and the trend line. A downside break below the $16,750 support might send the price towards the $16,500 level. Any more losses might call for a test of $16,350.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $16,750, followed by $16,700.

Major Resistance Levels – $16,900, $17,000 and $17,500.

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Filed under: Bitcoin - @ January 6, 2023 1:46 am