BTC Technical Analysis: At $16.7K, Bitcoin Still Awaits Bullish Breakout

The Bitcoin (BTC) price actions display that the token is still on a bearish trend, falling over 4.09% in the last 7 days. The token struggled to stay above the crucial mark of $17,000 as it registered a 1.12% drop in the last 24 hours with a daily high of $17,098.29. Currency trading at $16,706.06, BTC dropped as low as $16,610.11 in the last 24 hours. At $34.1 billion the BTC trading volume plunged by 17.11% indicating low enthusiasm among traders while they are waiting for a bullish breakout to get an entry opportunity. Since BTC plunged below $19,000 last week, it has been consolidating between $18,000 and $16,000, unable to deliver a bullish breakout.

Key Points

Source: Tradingview

BTC Technical Analysis

The BTC price actions moving far below the 200-day SMA shows a strong bearish trend in the market. The downtrend is confirmed by the repeated high-price rejection candles on the daily chart. The 0.63% fall in market cap to $321.09 billion also supports the bearish sentiments in the market due to high price volatility. Sideline traders have to wait for the price to show reversal signs with a bullish breakout before making a position. If BTC witnesses a bullish breakout it may break above the $17,200 resistance, offering entry opportunities. On the other hand, if it fails to break through the 38.2% Fibonacci retracement level to gain bullish momentum, it could fall below $15,965.

Technical Indicators

Due to high selling pressure, RSI struggles to break above the range of 50, making multiple bearish divergences while diving below the 14-day SMA to approach the oversold boundary. On a bearish histogram, MACD makes a bearish crossover twice far below the halfway line, indicating a bearish momentum in the market.

The technical indicators show a strong bearish trend due to high volatility in the market with RSI at 33 showing high selling pressure supporting the downward trendline.