Key Highlights
- Bitcoin price started an upside correction from the $15,540 zone.
- A key bearish trend line is forming with resistance near $17,320 on the 4-hours chart.
- The price could struggle to gain bullish momentum above $17,500 and $18,000.
- EUR/USD and GBP/USD extended gains above 1.0400 and 1.1950 respectively.
Bitcoin Price Technical Analysis
Bitcoin price declined heavily against the US dollar after the collapse of FTX exchange. BTC/USD broke the $20,000 support and even spiked below the $16,000 level.
Looking at the 4-hours chart, the pair settled below the $17,000 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
It traded as low as $15,543 before the bulls took a stand. Bitcoin price started a recovery wave above the $16,500 resistance zone. There was a minor move above the 23.6% Fib retracement level of the main drop from the $22,286 swing high to $15,543 low.
On the upside, the price is facing a significant resistance at $17,350. There is also a key bearish trend line forming with resistance near $17,320 on the same chart.
The next resistance sits near the $18,000 zone. It is near the 50% Fib retracement level of the main drop from the $22,286 swing high to $15,543 low. A close above the $18,000 level may perhaps start another steady increase in the coming days.
In the stated case, the price could rise towards the $19,150 level. Any more gains could set the pace for a move towards the $20,000 level.
On the downside, an initial support sits near the $16,150 level. The main breakdown support sits near the $15,500 zone. If there is a downside break, bitcoin might decline towards the $13,800 support in the coming days.
Economic Releases
- UK Consumer Price Index for Oct 2022 (YoY) – Forecast +10.7%, versus +10.1% previous.
- UK Core Consumer Price Index for Oct 2022 (YoY) – Forecast +6.4%, versus +6.5% previous.
- US Retail Sales for Oct 2022 (MoM) – Forecast +1.0%, versus 0% previous.
