Bitcoin price faces rejection, why BTC could resume its downtrend

Bitcoin price struggled to clear the $17,000 resistance. BTC looks to form a double top pattern and may dive below the $16,000 support.

• Bitcoin attempted an upside break above the $17,000 resistance but failed.
• The price is trading above $16,300 and the 100 hourly simple moving average.
• There was a break below an important bullish trend line with support near $16,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair may continue to decline if it breaks the $16,000 support zone.

The Bitcoin price battle continues

Bitcoin price attempted a recovery wave from the $15,500 support zone. BTC climbed above the $16,000 and $16,500 resistance levels.

It even settled above the $16,300 level and the 100 hourly simple moving average. However, the bears were active near the $16,800 zone. It seems that the price faced another major rejection near the $16,800 level and is forming a double top pattern.

Bitcoin price started another decline from the $16,800 zone. There was a break below an important bullish trend line with support near $16,420 on the hourly chart of the BTC/USD pair.

It is now approaching the 23.6% Fib retracement level of the recent rise from the $15,470 swing low to the $16,791 high. Also, it is trading above $16,300 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $16,600 level.

Source: BTCUSD on TradingView.com

The first major resistance is near the $16,800 zone. A successful move above the $16,800 resistance could start a real recovery wave. The next major resistance is near $17,000, above which the price could pick up the pace for a move towards the $17,500 zone.

New decline in BTC?

If bitcoin fails to climb above the $16,800 resistance, it may continue to move lower. An immediate support on the downside is near the $16,280 level and the 100-hour simple moving average.

The next major support is near the $16,130 zone or the 50% Fib retracement level of the recent rise from the $15,470 swing low to $16,791 high, below which the price may gain bearish momentum. In the indicated case, the price may fall towards the $15,500 support zone.

Technical indicators:

Hourly MACD – MACD is now picking up speed in the bearish zone.

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

Major support levels – $16,280, followed by $16,130.

Major resistance levels – $16,800$17,000 and $18,000.