Bitcoin price remains in bullish zone for a rally to $18,000, here is why

the Bitcoin-Price started a downward correction from the Resistance from $17,000. BTC found support near $16,750 and may soon attempt an upside break above $17,000.

• Bitcoin is showing bullish signs above the $16,600 and $16,750 levels.
• The price is trading above $16,750 and the 100 hourly simple moving average.
• There is a crucial bullish trend line forming with support near $16,750 on the hourly chart of the BTC/USD pair (data feed by Kraken).
• The pair could start a strong rise if there is a close above the $17,000 resistance.

Bitcoin price continues to be supported

Bitcoin price attempted a decent upward move above the $16,800 resistance level. BTC even surged towards the $17,000 resistance zone but there was no clear break to the upside.

A high was formed at $16,987 and the price started a downward correction. There was a move below the $16,800 support zone. The price fell below the 50% Fib retracement level of the bullish move from the $16,615 swing low to the $16,987 high.

However, bitcoin price found support near $16,750. The 61.8% Fib retracement level of the move up from the $16,615 swing low to the $16,987 high is acting as support.

There is also a crucial bullish trend line forming with support near $16,750 on the hourly chart of the BTC/USD pair. The pair is stable above $16,750 and the 100 hourly simple moving average. On the upside, there is an immediate resistance near $16,900.

Source: BTCUSD on TradingView.com

The next major resistance is near the $17,000 zone. A sharp move and a close above the $17,000 resistance could trigger a sharp rise in the short-term. In the mentioned case, the price could perhaps rally towards the $17,550 level. Further gains might require a move towards the $18,000 level.

Dips in BTC supported?

If bitcoin price fails to clear the $17,000 resistance, it might start a downside correction. Immediate support on the downside is near $16,800.

The next major support is near $16,750 and the trend line. A downside break below the $16,750 support could propel the price towards $16,500. Further losses could require a test of $16,350.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength index) – RSI for BTC/USD is now above the 50 level.

Key support levels – $16,750 followed by $16,700.

Major resistance levels – $16,900, $17,000 and $17,500.