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Bitcoin Price Rejects $18K, Why There is Risk of Another Drop To $16K

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Bitcoin 8
11
Nov

Bitcoin price recovered over $1,500 and climbed above $17,500. BTC failed to clear the $18,000 resistance and started a fresh decline.

  • Bitcoin started a recovery wave above the $17,000 and $17,200 resistance levels.
  • The price is trading below $18,500 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $16,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could resume its decline if there is a close below the $16,750 support zone.

Bitcoin Price Faces Key Hurdle

Bitcoin price declined heavily below the $18,000 support zone. FTX’s fall is still hurting the market and there was a strong decline towards the $16,000 support zone.

The price traded as low as $15,555 and recently started an upside correction, similar to ethereum, bnb, and ripple. There was a steady recovery wave above the $16,500 and $17,000 resistance levels. The price climbed above the 23.6% Fib retracement level of the main decline from the $20,670 swing high to $15,555 low. There is also a key bullish trend line forming with support near $16,900 on the hourly chart of the BTC/USD pair.

Bitcoin price also moved above the $17,500 level, but it struggled near the $18,000 resistance zone. The 50% Fib retracement level of the main decline from the $20,670 swing high to $15,555 low also acted as a strong resistance.

It is now trading below $18,500 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $17,400 level. The first major resistance is near the $18,000 level.

Source: BTCUSD on TradingView.com

A clear move above the $18,000 resistance might push the price further higher. The next major resistance is near $18,500 or the 100 hourly simple moving average, above which the price could test the $20,000 zone.

More Losses in BTC?

If bitcoin fails to start a recovery wave above the $18,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $16,900 level and the trend line.

The next major support is near the $16,750 zone. A clear move below the $16,750 support might push the price further lower. In this case, the price may perhaps decline towards the $16,000 support zone.

Technical indicators:

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

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

Major Support Levels – $16,900, followed by $16,750.

Major Resistance Levels – $17,400, $18,000 and $18,500.

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