Analysis

TA: Bitcoin Near Inflection Zone, Why Breakdown Below $15,800 Seems Likely

Bitcoin price started a downside correction from well above $ 16,200 against the US Dollar. BTC is likely to accelerate losses if there is a clear break below the $ 15,800 support.

  • Bitcoin failed to stay above the $ 16,200 support and extended its decline.
  • The price is currently trading below $ 16,000 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $ 16,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair remains at a risk of a sharp decline if there is a clear break below the $ 15,800 support.

Bitcoin Price Could Decline Further

After struggling to gain pace above the $ 16,500 level, bitcoin price started a downside correction. BTC broke the $ 16,200 support level and settled below the 100 hourly simple moving average to move into a short-term bearish zone.

It even broke the $ 16,000 handle, but the bulls were able to protect $ 15,800. The recent swing low was formed near $ 15,803 before the price started a minor upward move. There was a break above the $ 15,900 and $ 15,950 levels.

Bitcoin price even spiked above the 50% Fib retracement level of the recent decline from the $ 16,172 high to $ 15,803 swing low. The price is now struggling to recover above the $ 16,000 zone and the 100 hourly simple moving average.

Bitcoin Price

Source: BTCUSD on TradingView.com

There is also a key bearish trend line forming with resistance near $ 16,050 on the hourly chart of the BTC/USD pair. The trend line is close to the 61.8% Fib retracement level of the recent decline from the $ 16,172 high to $ 15,803 swing low.

A clear break above the trend line resistance, $ 16,100 and the 100 hourly SMA could open the doors for a fresh increase in the coming sessions.

Downside Break in BTC?

If bitcoin fails to clear the trend line resistance, $ 16,100 and the 100 hourly SMA, there is a risk of a downside break. The first major support on the downside is near the $ 15,800 level.

A downside break below the $ 15,800 support may perhaps put a lot of pressure on the bulls. In the stated case, the price is likely to decline towards the $ 15,500 support or even $ 15,200.

Technical indicators:

Hourly MACD – The MACD is slowly losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently close to the 50 level.

Major Support Levels – $ 15,800, followed by $ 15,500.

Major Resistance Levels – $ 16,000, $ 16,050 and $ 16,200.

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Technical analysis – NewsBTC

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