Price of Bitcoin Could Decline Towards The $16k Support Zone

Key Take-Aways

  • Below the $17,150 support, the price of bitcoin began to plummet once more.
  • On the 4-hours chart, it fell below a significant bullish trend line with support at $17,280.
  • The price of crude oil increased and overcame the $78.00 barrier.
  • In Q3 2022, the US GDP might increase by 2.9%.

Technical Analysis of the Bitcoin Price

Before the bears showed up, the price of bitcoin surged above the $18,000 resistance. When BTC/USD reached its peak, it began a new slide below $18,000.

The 200 simple moving average (green, 4-hours) and the 100 simple moving average were all breached by the price on the 4-hours chart. The price even fell below the $17,000 mark as a result of the movement.

The price just began an upward correction after trading as low as $16,268. Minor movement was made above the $16,500 resistance level.

Bitcoin surpassed the 23.6% Fib retracement level of the significant slide from the swing high of $18,354 to the low of $16,268. The 100 simple moving average and the $17,100 mark are currently converging as resistance.

The area around $17,310 contains the next resistance. It is quite close to the 50% Fib retracement level of the significant decrease from the swing high of $18,354 to the low of $16,268.

In the next days, a closing over the $17,310 mark would perhaps signal the beginning of another gradual rise. In the hypothetical situation, the cost might increase to around $18,000. Any further increases might lay the stage for a move in the direction of the $18,400 mark.

An early support for the downside is located close to the $16,520 mark. Near the $16,265 region, the primary breakdown assistance is located. In the next days, bitcoin may begin a new, more significant slide if there is a negative break and close below $16,265. In the hypothetical scenario, it might test $15,650 again or go back to the $16,000 support.

Economic News To Trade Today

  • US GDP for Q3 2022 is expected to increase by 2.9% from the previous quarter’s 2.9%.
  • US Initial Jobless Claims: 215K expected, up from 211K in the previous period.
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.