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Bitcoin price traded to a new multi-month high close to $16,500 against the US Dollar. BTC is now signaling a downside correction and it could test the $15,200 support.
- Bitcoin traded above the $16,000 resistance and almost tested the $16,500 zone.
- The price is now correcting below $16,000, but it is well above the 100 simple moving average (4-hours).
- There was a break below a major bullish trend line with support at $16,000 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is showing signs of a downside correction towards the $15,200 and $15,000 support levels.
Bitcoin Price is Forming Short-term Top?
This past week, bitcoin started a strong upward move above the $15,500 and $15,800 resistance levels against the US Dollar. The BTC/USD pair even rallied above $16,000 and settled well above the 100 simple moving average (4-hours).
It traded close to the $16,500 level and formed a new multi-month high at $16,493 before starting a downside correction. There was a break below the $16,200 support level.
Bitcoin price declined below the 50% Fib retracement level of the upward wave from the $15,442 swing low to $16,493 high. Moreover, there was a break below a major bullish trend line with support at $16,000 on the 4-hours chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The bulls are now protecting the $15,800 support level. The next key support is near the $15,690 level or the 76.4% Fib retracement level of the upward wave from the $15,442 swing low to $16,493 high.
If there is a clear break below the $15,690 level, the price could continue to move down towards the $15,250 and $15,200 support levels. The price must stay above the $15,000 support zone to avoid a larger decline towards the $14,500 level.
Fresh Increase in BTC?
If bitcoin stays above the $15,690 and $15,200 support levels, there are chances of a fresh increase. An initial resistance on the upside is near the $16,200 level.
The next major resistance is near the $16,450 and $16,500 levels. A clear break above the $16,500 level may perhaps open the doors for a larger increase towards the $17,000 level.
Technical indicators
4 hours MACD – The MACD for BTC/USD is slowly losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is just below the 50 level.
Major Support Level – $15,690
Major Resistance Level – $16,200
