- Bitcoin price started a recovery wave from the $15,500 support against the US Dollar.
- The price is now trading above $16,500 and the 55 simple moving average (4-hours).
- There was a break above a crucial bearish trend line with resistance near $16,480 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair could recover further, but upsides might be limited above the $18,500 resistance zone.
Bitcoin price is recovering above $16,500 against the US Dollar. BTC might extend its recovery if it stays above the $16,400 support zone.
Bitcoin Price Analysis
Bitcoin price remained well supported near the $15,500 support zone. The bears made two attempts to clear the $15,500 support, but they failed. A swing low was formed near $15,512 and the price is now correcting higher.
There was a recovery wave above the $16,000 resistance zone. Besides, there was a break above a crucial bearish trend line with resistance near $16,480 on the 4-hours chart of the BTC/USD pair. The pair even cleared the $16,750 resistance zone.
It is now trading above $16,500 and the 55 simple moving average (4-hours). An immediate resistance on the upside is near the $16,920 level. It is near the 23.6% Fib retracement level of the main decline from the $21,480 swing high to $15,510 low.
The next major resistance might near the $17,200 zone. A clear move above the $17,200 level might send the price towards $18,000, above which the price might rise towards the 50% Fib retracement level of the key drop from the $21,479 swing high to $15,510 low.
Any more gains might push the price towards the $19,000 zone. If there is no upside break, the price might start a fresh decline below $16,600.
The first major support is near the $16,400 level and the 55 simple moving average (4-hours). The next key support is near the $16,000 level, below which the price might accelerate lower. In the stated case, the price could decline towards the $15,500 level. Any more losses might send the price towards the $14,200 level.
Looking at the chart, bitcoin price is clearly trading above $16,500 and the 55 simple moving average (4-hours). Overall, the price could recover further, but upsides might be limited above the $18,500 resistance zone.
Technical Indicators
4 hours MACD – The MACD is now gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is now above the 50 level.
Key Support Levels – $16,400 and $15,500.
Key Resistance Levels – $17,000, $17,200 and $18,500.
