What could trigger a new increase

Bitcoin price started a downside correction from the $17,500 resistance. BTC is trading above the $16,800 support and could start another rally.

• Bitcoin tested the $16,800 support zone and traded as low as $16,888.
• The price is trading near $17,000 and the 100 hourly simple moving average.
• There was a break above a key triangle with resistance near $17,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair needs to stay above the $16,800 support to initiate another increase.

Bitcoin price has key support

Bitcoin price attempted another rise above the $17,500 resistance zone. However, BTC failed to gain strength above the $17,400 level. A high was formed near $17,440 before there was a downside correction.

There was a move below the $17,200 support zone and the 100 hourly simple moving average. However, the bulls were active above the $16,800 support zone. A low was formed near $16,888 and the price is now consolidating losses.

There was a minor increase above the $17,000 level. The Bitcoin price is now trading near $17,000 and the 100-hour simple moving average. Also, there was a break above the 23.6% Fib retracement level of the recent drop from the $17,440 swing high to the $16,888 low.

There was also a break above a key triangle with resistance near $17,000 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $17,170 level. It is near the 50% Fib retracement level of the recent drop from the $17,440 swing high to the $16,888 low.

Source: BTCUSD on TradingView.com

The first major resistance is near the $17,200 zone, above which the price may start another steady rise. In the indicated case, the price may rise towards the resistance of $17,450. The next major resistance is near $17,500, above which the price rises towards the $18,000 zone in the short term.

More losses in BTC?

If bitcoin fails to start another rally above the $17,170 resistance, there could be more downside. An immediate support on the downside is near the $16,880 level.

The next major support is near the $16,800 zone. A downside break below the $16,800 support could call for a drop towards $16,500. Any further losses could call for a test of the key $16,000 support zone in the near term.

Technical indicators:

Hourly MACD – MACD is now losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – RSI for BTC/USD is now above the 50 level.

Major support levels – $16,800, followed by $16,500.

Major resistance levels – $17,170, $17,200 and $17,500.