If the Bitcoin price moves above the USD 16,800 resistance zone, it might start a wave of recovery. If that does not happen, it might continue to drop to the USD 16,280 level and the 100-hour SMA.
The price of Bitcoin (BTC) has struggled to start a wave of recovery from the USD 15,500 support zone. It recently exceeded the USD 16,000 and USD 16,500 resistance levels.
The bears remained active near USD 16,800, although the price reached above the USD 16,300 level and the 100-hour SMA. The value of Bitcoin may have faced another rejection close to USD 16,800, leading it to form a double-top pattern.
Bitcoin dropped from the USD 16,800 area, breaking below a key bullish trend line with support near USD 16,420. The price is approaching the 23.6% Fibonacci retracement level of the recent rise from the USD 15,470 low.
The pioneering cryptocurrency is trading above USD 16,300 and the 100-hour SMA, while its immediate resistance is near USD 16,600.
It might start a recovery wave if it moves above the USD 16,800 resistance zone. The following key resistance is close to USD 17,000, from which the price could gain traction toward USD 17,500.
Bitcoin Might Resume Bearish Momentum If It Falls Below USD 16,791
If the price of Bitcoin does not break above the USD 16,800 resistance, it might continue dropping. Its immediate bearish support is near USD 16,280 and the 100-hour simple moving average.
The following crucial support is close to USD 16,130, or the 50% Fibonacci retracement level of the recent rise from the USD 15,470 low. The price might gain bearish momentum if it drops below USD 16,791, moving toward the USD 15,500 support zone.
While the Moving Average Convergence/Divergence (MACD) indicator is gaining bearish traction, the hourly Relative Strength Index (RSI) is below the 50 level.
The crucial support levels are USD 16,280 and USD 16,130, while the key resistance levels are USD 16,800, USD 17,000, and USD 18,000.
Meanwhile, Bitcoin is trading around USD 16,428 and has accumulated a 1.6% gain in the last 24 hours. While its daily trading volume is above USD 19.26 billion, its market capitalization is approximately USD 315.70 billion, according to CoinGecko.
It Is Worth Investing in Bitcoin for the Long Term
Despite the catastrophic effects of the FTX collapse, Bitcoin has managed to hold steady at around USD 17,000. With just over a month to go until 2022 ends, the price of the pioneering cryptocurrency might rise significantly.
Since the price of cryptocurrencies has historically dropped in November and December, there might be a market recovery by 2023. Despite the bearish trend, many investors like Michael Saylor and Nayib Bukele remain bullish and continue to invest in Bitcoin.
However, investors should research Bitcoin before buying it to learn about its all-time high, behavior, and possible future prices. It is only a matter of time before seeing where the market will take the value of the pioneering cryptocurrency.
By Alexander Salazar
