Tue, Feb 07, 2023 @ 05:20 GMT
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Bitcoin Price Technicals Suggest Fresh Drop To $16K

Key Highlights

  • Bitcoin price started a fresh decline below the $17,150 support.
  • It traded below a major bullish trend line with support at $17,280 on the 4-hours chart.
  • Crude oil price climbed higher and broke the $78.00 resistance.
  • The US GDP could grow 2.9% in Q3 2022.

Bitcoin Price Technical Analysis

Bitcoin price spiked above the $18,000 resistance before the bears appeared. BTC/USD topped near $18,354 and started a fresh decline below $18,000.

Looking at the 4-hours chart, the price traded below the $17,500 support zone, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours). The move was such that the price even dived below the $17,000 level.

The price traded as low as $16,268 and recently started an upside correction. There was a minor move above the $16,500 resistance zone.

Bitcoin climbed above the 23.6% Fib retracement level of the key decline from the $18,354 swing high to $16,268 low. It is now facing a confluence resistance near the $17,100 level and the 100 simple moving average (red, 4-hours).

The next resistance sits near the $17,310 zone. It is close to the 50% Fib retracement level of the key decline from the $18,354 swing high to $16,268 low.

A close above the $17,310 level may perhaps start another steady increase in the coming days. In the stated case, the price could rise towards the $18,000 level. Any more gains could set the pace for a move towards the $18,400 level.

On the downside, an initial support sits near the $16,520 level. The main breakdown support sits near the $16,265 zone. If there is a downside break and close below $16,265, bitcoin might start another major decline in the coming days. In the stated case, it could revisit the $16,000 support or even test $15,650.

Economic Releases

  • US Initial Jobless Claims – Forecast 215K, versus 211K previous.
  • US Gross Domestic Product for Q3 2022 – Forecast 2.9% versus previous 2.9%.
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