Bitcoin Price Close Above $17.5K Could Spark Larger Degree Recovery

Bitcoin price is attempting an upside break above $17,000. BTC could start a steady recovery if it clears the $17,000 and $17,200 resistance levels.

• Bitcoin is attempting an upside break above the $17,000 and $17,200 levels.
• The price is trading above $16,800 and the 100 hourly simple moving average.
• There was a break above a key bearish trend line with resistance near $16,820 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could attempt a fresh increase if there is a clear move above the $17,200 resistance zone.

Bitcoin Price Eyes Upside Break

Bitcoin price managed to stay above the $16,550 zone. A base was formed and the price started a fresh increase above the $16,700 resistance zone. BTC even climbed above the $16,800 resistance and the 100 hourly simple moving average.

There was a clear move above the 50% Fib retracement level of the downward move from the $17,067 swing high to $16,565 low. Besides, there was a break above a key bearish trend line with resistance near $16,820 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading above $16,800 and the 100 hourly simple moving average. It is also trading above the 61.8% Fib retracement level of the downward move from the $17,067 swing high to $16,565 low.

On the upside, an immediate resistance is near the $17,000 zone. The first major resistance is near the $17,200 zone. A clear move above the $17,200 resistance might start a steady recovery wave.

Source: BTCUSD on TradingView.com

The next major resistance is near $17,500, above which the price climb towards the $18,000 resistance zone. Any more gains might send the pair towards the $18,500 resistance zone.

Fresh Drop in BTC?

If bitcoin fails to clear the $17,200 resistance, there could be a fresh downward move. An immediate support on the downside is near the $16,800 level and the 100 hourly SMA

The next major support is near the $16,680 level. A downside break below the $16,680 support might call for a move towards the $16,550 level. Any more losses might send the price towards $16,350.

Technical indicators:

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

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

Major Support Levels – $16,800, followed by $16,550.

Major Resistance Levels – $17,000, $17,200 and $17,500.

Source