Bitcoin’s Choppy Session Continues – Brace for a Breakout Pattern

Bitcoin is still trading below $17,000 per coin. Unless there is a convincing rise over the $17,200 resistance zone, BTC remains vulnerable to a new fall. Bitcoin’s price began an upward correction from the $16,250 level. BTC was able to regain a few points and settle over the $16,600 barrier.

The price broke through the $16,800 resistance level and the 100 hourly simple moving average. The price even attempted to break through the $17,000 resistance level, but the bears were on the attack. The price has hit a high near $17,067 and is consolidating in a range.

There was a little dip below the 23.6% Fib retracement level of the ascending wave from the swing low of $16,261 to the high of $17,067. BITCOIN is currently trading above the $16,800 mark and the 100 hourly simple moving average.

BTC/USD

Bitcoin (BTC/USD) Technical Outlook

On the upside, an immediate resistance level is near $16,900. On the hourly chart of the BTC/USD pair, a new descending channel is emerging with resistance near $16,900. The first significant resistance is located near the $17,000 level.

The biggest barrier appears to be forming between $17,200 and $17,250. A clear break above the $17,250 resistance level may signal a move towards the $17,500 level. The next significant barrier is close to $18,000, above which the price will rise to the $18,450 resistance zone.

If bitcoin fails to break through the $17,200 barrier level, a new plunge is possible. On the downside, there is immediate support near the $16,700 mark and the channel trend line.

The next key support is approaching $16,625 or the 50% Fib retracement level of the rising wave from the swing low of $16,261 to the high of $17,067. A break below the $16,625 support level may signal a move towards the $16,370 level. Any further declines could push the price to $16,000 or lower.