Bitcoin Price Shows Signs of Important Reversal
- 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.
- EIA Crude Oil Stocks Change – Forecast -2.375M, versus 1.694M previous.