Bitcoin’s price has risen beyond the $16,500 resistance level. BTC could increase more if it closes above the $17,000 barrier level. Bitcoin’s price established a base just above the $16,200 support level. BTC began a steady rise and broke through the $16,500 resistance zone and the 100 hourly simple moving average.
On the hourly chart of the BTC/USD pair, there was a break over a key negative trend line with a resistance of approximately $16,450 throughout the rise. The pair broke the 76.4% Fib retracement line of the negative move from the swing high of $16,589 to the low of $16,000.Bitcoin is trading above the $16,500 mark and the 100 hourly simple moving average. It is approaching the 1.618 Fib extension level of the negative move from the swing high of $16,589 to the low of $16,000.
On the upside, an immediate resistance level is near $16,950. The first significant obstacle is near $17,000, and the price may increase. In the scenario above, the price could challenge the $17,500 resistance. The next big barrier is near $18,000, beyond which the price may accelerate toward the $18,800 zone.
A downside correction is possible if bitcoin fails to break through the $17,000 barrier. On the downside, there is immediate support near $16,800.The next key support is near $16,500 or the 100 hourly SMA, below which the price will continue to fall. In the scenario above, the price could fall toward the $16,200 support zone. Any further losses could lead to a test of the critical $16,000 support zone in the short term.