Bitcoin Price Lacks Momentum Above $17k, BTC Holders Are Safe: Here’s Why

Bitcoin price extended the rally and tested the $17,500 resistance. BTC corrected gains, but it remains well supported above the $16,800 support.

• Bitcoin extended its upward move above the $17,100 and $17,300 resistance levels.
• The price is trading near $17,000 and the 100 hourly simple moving average.
• There was a break below an important bullish trend line with support near $17,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair needs to stay above the $16,800 support to initiate another increase.

Bitcoin price remains supported

Bitcoin price settled above the $17,000 resistance zone and extended the rally. BTC was able to clear the $17,100 and $17,200 resistance levels.

The price even rose above $17,400 and traded close to the $17,500 resistance zone. However, the bears were active near the $17,500 resistance zone. A high was formed near $17,440 and the price started a downside correction.

Bitcoin price fell below the $17,200 level and the 100-hour simple moving average. There was a break below an important bullish trend line with support near $17,050 on the hourly chart of the BTC/USD pair.

The price traded as low as $16,888 and is currently rising. It is trading near $17,000 and the 100 hourly simple moving average. It is trading above the 23.6% Fib retracement level of the recent decline from the $17,440 swing high to the $16,888 low.

On the upside, an immediate resistance is near the $17,165 level. It is near the 50% Fib retracement level of the recent decline from the $17,440 swing high to the $16,888 low. The first major resistance is near the $17,250 zone, above which the price may start another steady rise.

Source: BTCUSD on TradingView.com

In the indicated case, the price may rise towards the $17,500 resistance. The next major resistance is near $17,650, above which the price rises towards the $18,000 zone in the short term.

More losses in BTC?

If bitcoin fails to start another rally above the $17,165 resistance, there could be more downside. An immediate support on the downside is near the $16,850 level.

The next major support is near the $16,800 zone. A downside break below the $16,800 support could call for a move towards $16,500. Any further losses may require a test of the key support zone at $16,000 in the near term.

Technical indicators:

Hourly MACD – MACD is now losing momentum in the bearish zone.

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

Major support levels – $16,800, followed by $16,500.

Major resistance levels – $17,165, $17,250 and $18,000.