17:16TA: Bitcoin Surges 5%, Why Pullbacks Remain Attractive To The Bulls
Bitcoin price started a strong increase after it broke the $16,000 resistance against the US Dollar. BTC is up 5% and it is now facing hurdles near $16,500.
Bitcoin managed to clear the $16,000 resistance to start another increase.
Bitcoin Price Settles Above $16K
Yesterday, we discussed the significance of an upside break in bitcoin price above the $16,000 resistance. BTC did gain strength and was able to clear the $16,000 resistance level.
The price even broke the $16,200 resistance and settled well above the 100 hourly simple moving average. It traded close to the $16,500 resistance and a new multi-month high was formed near $16,487. The price is currently consolidating gains near the $16,350 level.
An initial support is near the $13,650 level. It is close to the 23.6% Fib retracement level of the recent upward move from the $15,895 swing low to $16,487 high.
Source: BTCUSD on TradingView.com
The first major support on the downside is near the $16,200 level. The 50% Fib retracement level of the recent upward move from the $15,895 swing low to $16,487 high is also near the $16,195 level. Moreover, there are two bullish trend lines forming with support near $16,080 and $15,900 on the hourly chart of the BTC/USD pair.
On the upside, the $16,500 level is a strong resistance. A successful break above the $16,500 resistance might open the doors for a push towards the $16,800 level in the near term.
Dips Remain Supported in BTC?
If bitcoin starts a downside correction, the $16,200 support zone might act as a decent support. The next major support is near the $16,000 level (the recent breakout zone).
A downside break below the $16,000 support and both bullish trend lines might accelerate losses in bitcoin and it could decline towards the $15,500 support level.
Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower from the 70 level.
Major Support Levels – $16,200, followed by $16,000.
Major Resistance Levels – $16,500, $16,800 and $16,850.
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