Following the resistance zone near USD 17,265, the price of Bitcoin might test the USD 18,000 zone. Edward Snowden recently said the considerable decline in the price of Bitcoin offers many opportunities for investors.
The price of Bitcoin (BTC) is struggling to break above the USD 16,000 support zone. If it clears the USD 17,000 and USD 17,200 resistance levels, it might rise significantly in the short term.
Bitcoin Consolidates above the USD 1,600 Support Zone
The value of Bitcoin has remained stable above the USD 16,000 support zone. It formed a base and slowly rose above the USD 16,350 resistance zone.
Bitcoin moved above the 23.6% Fibonacci retracement level, going down from the USD 18,155 high to the USD 15,833 low. The bulls could minimize the losses, helping the price move above USD 16,400.
The cryptocurrency is trading above USD 16,500 and the 100-hour SMA, like Ether (ETH). While immediate resistance is close to USD 16,900, the hourly chart shows a bearish trend line with resistance near USD 16,900.
The trend line is close to the 50% Fibonacci retracement level of the drop from the USD 18,155 high to the USD 15,833 low. Since the most relevant resistance is near USD 17,000, the price might start rising significantly.
The next most relevant resistance is near USD 17,265 before Bitcoin tests the USD 18,000 zone. It might make further gains if the price rises toward the USD 18,500 resistance zone.
The Price Might Drop Further If It Remains below USD 17,000
The price of Bitcoin might start dropping further if it fails to begin a rally wave above USD 17,000. Its immediate support on the downside is near USD 16,650 and the 100-hour SMA.
Since the following relevant support is near the USD 16,350 zone, a move below it might push the price lower. In that regard, the value of Bitcoin may decline toward the USD 16,000 support zone.
The hourly MACD loses pace in the bullish zone, but the hourly RSI is above 50. While the most significant support levels are USD 16,350, the most relevant resistance level is USD 17,500.
Meanwhile, Edward Snowden Believes Bitcoin Offers an Opportunity
According to Edward Snowden, the considerable decline in the price of Bitcoin may represent many opportunities for investors. He recently said on Twitter that he feels like returning to the charge after a long time.
However, he explains that he is not giving investment advice as he has no financial education. His followers advised him not to store his cryptocurrencies on a centralized platform if he decided to buy the dip.
The FTX disaster might affect other exchanges like crypto.com and gate.io, between which there might have been an accidental transfer of USD 400 million.
Bitcoin is trading at around USD 16,747 and has accumulated a 0.2% loss over the last 24 hours. While its daily trading volume is above USD 26.96 billion, its market capitalization is about USD 321.70 billion, according to CoinGecko.
By Alexander Salazar
