Bitcoin price gained bullish momentum and it broke the $16,500 resistance against the US Dollar. BTC is likely to continue higher towards $17,000 as long as it is above $16,200.
- Bitcoin regained strength and it broke the $16,500 and $16,600 resistance levels.
- The price traded to a new monthly high at $16,897 and settled above the 100 hourly simple moving average.
- There is a short-term contracting triangle forming with resistance near $16,725 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct a few points, but the bulls are likely to remain active near $16,500.
Bitcoin Price Signaling More Upsides
After forming a base near the $15,800 level, bitcoin price started a fresh increase. BTC broke the $16,200 and $16,350 resistance levels to move back into a positive zone.
The upward move was such that the price broke the $16,500 resistance. The price traded towards the $17,000 level and a new monthly high was formed near $16,897. Bitcoin is currently consolidating gains below $16,800 and it is well above the 100 hourly simple moving average. An initial support is near the $16,630 level. It is close to the 23.6% Fib retracement level of the recent rally from the $15,796 low to $16,897 high. There is also a short-term contracting triangle forming with resistance near $16,725 on the hourly chart of the BTC/USD pair.
Source:The triangle support is close to the $16,630 level, below which the price could test the 50% Fib retracement level of the recent rally from the $15,796 low to $16,897 high.
On the upside, a clear break above the $16,725 and $16,750 levels might start a fresh increase. The next major resistance is near the $16,850 and $16,900 levels, above which the bulls are likely to aim a break above the $17,000 level.