Bitcoin price may avoid another downtrend if it closes above one key level

Bitcoin price extended its decline below the $17,000 level. BTC can avoid a major drop if it closes above the $17,000 resistance zone.

• Bitcoin remained in a bearish zone, trading below the $17,000 support.
• The price is trading below $17,000 and the 100 hourly simple moving average.
• An important bearish trend line is forming with resistance near $16,920 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is showing a few bearish signs below the $17,000 pivot level.

Bitcoin price is showing bearish signs

Bitcoin price failed to stay in a positive zone above the $17,000 pivot level. BTC bears were active and there was pressure below the $16,800 support zone.

The price tested the $16,700 level and settled below the 100 hourly simple moving average. A low is forming near $16,700 and the price is now consolidating losses. There was a minor rise above the $16,800 resistance level.

Bitcoin price climbed above the 23.6% Fib retracement level of the recent decline from the $17,130 swing high to the $16,700 low. It is now trading below $17,000 and the 100 hourly simple moving average. There is also an important bearish trend line forming with resistance near $16,920 on the hourly chart of the BTC/USD pair.

On the upside, an immediate resistance is near the $16,920 level and the bearish trend line. It is near the 50% Fib retracement level of the recent decline from the $17,130 swing high to the $16,700 low.

Source: BTCUSD on TradingView.com

The first major resistance is near the $17,000 zone, above which the price may start another steady rise. In the indicated case, the price may rise towards the resistance at $17,200. The next major resistance is near $17,450, 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 $17,000 resistance, there could be more downside. An immediate support on the downside is near the $16,700 level.

The next major support is near the $16,500 zone. A downside break below the $16,500 support could call for a drop towards $16,000. Any further losses could push the price towards the $15,500 pivot zone in the short 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 near the 50 level.

Major support levels – $16,700, followed by $16,500.

Major resistance levels – $16,920, $17,000 and $17,200.