(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

Bitcoin Price At Risk of Fresh Decline, Here’s Why

Article background

Aayush Jindal

Key Highlights

  • Bitcoin price is struggling to clear the $17,400 resistance zone.
  • It traded below a key bullish trend line with support at $16,950 on the 4-hours chart.
  • The price could gain bearish momentum if it fails to stay above the $16,200 support.
  • Crude oil price spiked below $75 before there was a minor upside correction.

Bitcoin Price Technical Analysis

Bitcoin price attempted a recovery wave above the $16,000 resistance zone. BTC/USD was able to climb above the $17,000 level, but the bears were active near the $17,400 zone.

Looking at the 4-hours chart, the price traded as high as $17,407 level and remained below the 200 simple moving average (green, 4-hours). The price started a downside correction below the $17,200 and $17,000 levels.

There was a break below a key bullish trend line with support at $16,950 on the same chart. The price traded below the 23.6% Fib retracement level of the bullish wave from the $15,452 swing low to $17,407 high.

It is now consolidating above the $16,500 level and the 100 simple moving average (red, 4-hours). On the downside, an initial support sits near the $16,420 level.

The main breakdown support sits near the $16,200 zone. If there is a downside break and close below $16,200, bitcoin might start another major decline in the coming days.

An immediate resistance is near the $17,200 level. The next resistance sits near the $17,400 zone. A close above the $17,400 level may perhaps start another steady increase in the coming days.

In the stated case, the price could rise towards the $18,000 level or the 200 simple moving average (green, 4-hours). Any more gains could set the pace for a move towards the $19,000 level.

Economic Releases

  • US Initial Jobless Claims - Forecast 230K, versus 225K previous.
Great