(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 Shows Signs of Important Reversal

Aayush Jindal

Aayush Jindal

Key Highlights

  • Bitcoin price started a fresh increase above the $16,750 resistance.
  • It broke a major bearish trend line at $16,760 on the 4-hours chart.
  • Gold price is gaining pace above the $1,870 resistance.
  • Crude oil price is facing a major hurdle near $77 and $78.

 

Bitcoin Price Technical Analysis

Bitcoin price formed a base and started a fresh increase above $16,550 resistance. BTC/USD surpassed key hurdles near $16,750 to move into a short-term positive zone.

Looking at the 4-hours chart, the price traded above the $16,800 resistance, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).

There was a clear move above a major bearish trend line at $16,760 on the same chart. Bitcoin price also spiked above the 50% Fib retracement level of the key decline from the $18,354 swing high to $16,268 low.

If the price climbs higher above the $17,400 ad $17,500 resistance levels, the price could rise further. The next resistance sits near the $17,860 zone. It is close to the 76.4% Fib retracement level of the key decline from the $18,354 swing high to $16,268 low.

A close above the $17,860 level may perhaps start another steady increase in the coming days. In the stated case, the price could rise towards the $18,350 level. Any more gains could set the pace for a move towards the $19,000 level.

On the downside, an initial support sits near the $17,000 level. The main breakdown support sits near the $16,800 zone and the 100 simple moving average (red, 4-hours).

If there is a downside break and close below $16,800, bitcoin might start another major decline in the coming days. In the stated case, it could revisit the $16,000 support or even test $15,650.

Economic Releases

  • EIA Crude Oil Stocks Change – Forecast -2.375M, versus 1.694M previous.