Bitcoin (BTC/USD) extended its recent pullback early in today’s North American session as the pair depreciated to the 16400 area after running out of steam around the 17356.30 level in the Asian session. Traders have been on the defensive since BTC/USD recently peaked around the 19500 area, just short of establishing a fresh all-time high. The pair stopped short of testing the 15808.49 area during the move lower, representing the 23.6% retracement of the wide appreciating range and absolute 2020 range from 3858 to 19500. Significant Stops were elected during the decline including below the 18605.14, 18275.16, 18016.74, 17604.12, 17517.42, 17156.69, 17099.13, 16905.00, 16603.10, 16357.50, and 16292.58 levels. If the pair is able to resume its upward trajectory, traders are carefully monitoring the 20311.36 and 21909.24 areas as upside price objectives. Similarly, the 20534.46 area is an upside price objective related to buying demand that originated earlier this year around the 6854.67 area.
Traders will pay close attention to some potential areas of technical support during pullbacks lower and these include the 16092.69 and 15935.90 areas. Notably, the 15935.90 and 16304.69 areas represent the 76.4% and 78.6% retracements of a historical depreciation from 19891.99 to 3128.89. Further below current market activity, traders are paying close attention to additional potential areas of technical support during pullbacks and these include the 14273.50, 14259.01, 14101.50, 13989.55, 13892.29, 13705.50, 13663.43, and 13594.42 levels. Chartists are observing that the 50-bar MA (4-hourly) is bullishly indicating above the 100-bar MA (4-hourly) and above the 200-bar MA (4-hourly). Also, the 50-bar MA (hourly) is bearishly indicating below the 100-bar MA (hourly) and below the 200-bar MA (hourly).
Price activity is nearest the 100-bar MA (4-hourly) at 17344.86 and the 50-bar MA (Hourly) at 18158.27.
Technical Support is expected around 17657.16/ 17306.03/ 16304.69 with Stops expected below.
Technical Resistance is expected around 19500/ 20311.36/ 21909.24 with Stops expected above.
On 4-Hourly chart, SlowK is Bearishly below SlowD while MACD is Bearishly below MACDAverage.
On 60-minute chart, SlowK is Bearishly below SlowD while MACD is Bullishly above MACDAverage.