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Bitcoin price analysis: Bitcoin reclaims $17,000 as bearish divergence looms

Bitcoin Price analysis

TL;DR Breakdown

  • Bitcoin price analysis shows a bullish trend
  • The key support level is $16,700
  • A bearish divergence is also forming, suggesting a short-term downtrend

Bitcoin price analysis shows the cryptocurrency is holding its gains this evening as it reclaims the $17,000 mark. While trading volume has been slowing down over the past few hours, Bitcoin continues to hold above key support at $16,700. A bearish divergence is also forming on the daily chart which could suggest a short-term downtrend in the coming days. The Williams Alligator indicator shows that bullish and bearish forces are currently wrestling for dominance.

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Cryptocurrencies price heatmap, Source: Coin360

Bitcoin is trading at $17,045.96 after a period of low volatility over the past few hours. The key support level is $16,700 which has proven to be a strong area of buying over the past two weeks. If this level is broken, then we could see Bitcoin fall lower towards $15,000.The Fibonacci Retracement Levels show that Bitcoin is currently trading between the 23.6% and 38.2% Fibonacci retracement levels, which suggests that gains in the short term could be limited by resistance at $18,000.

Bitcoin price analysis on a daily chart: BTC/USD trades in a sideways trend

Bitcoin price analysis reveals the BTC/USD pair has been trending sideways in the 1-day timeframe. This is reflected by lower highs and higher lows on the daily chart. The Williams Alligator indicator shows that bullish and bearish forces are currently wrestling for dominance in the market. The bulls have been able to defend the key support level at $16,700 which has helped Bitcoin to hold its gains.

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BTC/USD daily chart: TradingView

The upside target for Bitcoin price analysis remains $18,000 with key resistance levels identified at $17,500 and $19,000. On the downside, Bitcoin price analysis shows that support lies at $16,700 where there appears to be a strong buying interest from traders and investors. A breakdown below this level could lead to further

The daily chart shows that the 50-day moving average has moved higher in line with Bitcoin’s recent rally, although it appears to have hit resistance around $17,000. The technical indicators show that the path of least resistance is to the upside, with the RSI approaching overbought levels.

Bitcoin price analysis on a 4-hour chart: BTC/USD breaks above $17,000

Bitcoin price analysis shows the BTC/USD pair is holding steady above $16,700 as it trades between support and resistance levels. The technical indicators reflect consolidation in the market with the RSI sitting close to 50. A bullish divergence has formed on the oscillator which suggests that a short-term uptrend could be in the works.

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BTC/USD 4-hour chart: TradingView

The upside target for Bitcoin price analysis remains $18,000 which coincides with a key resistance level on the 4-hour chart. On the downside, support is provided by $16,700 followed by strong buying interest at $12,000. Key support levels are identified below this at $15,500 and $15,000.

Bitcoin price analysis conclusion

Bitcoin price analysis shows that the cryptocurrency is holding its gains and continues to consolidate above key support at $16,700. A bearish divergence has appeared on the daily chart which could suggest a short-term downtrend in the next few days. The technical indicators reflect consolidation in the market with bullish forces struggling to gain the upper hand. A break below key support at $16,700 could see Bitcoin fall lower towards $15,000. The upside target remains $18,000 which coincides with a key resistance level.

While waiting for Bitcoin to move further, see our long-term price predictions on ChainlinkVeChain, and Axie Infinity.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Ann Mugoiri

Ann Mugoiri

Ann likes to write about crypto and blockchain technology. She has been following the development of these technologies for a few years and believes that they have the potential to disrupt many industries.She has specialized in technical analysis to help cryptocurrency traders make more informed decisions.

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