Bitcoin Finds Stability Below $17,000 Amid Market Collapse

After days of a struggle between bulls and bears, Bitcoin has managed to find some stability below the $17,000 mark to $16,600 amid rising worries of a further market collapse. The asset is searching for a price upswing now that the increased volatility brought on by the collapse of the FTX cryptocurrency exchange has, at least temporarily, decreased.

Kitco News analyst Jim Wyckoff highlighted a negative price breakthrough for Bitcoin on November 18 as a result of the currency’s newfound stability. According to the recent price movement, the leading cryptocurrency looks to have strengthened recently, helping to halt any additional losses.

According to the statement:

Bitcoin-U.S. dollar prices are near steady in early U.S. trading Friday. Recent price action had formed a bearish pennant pattern on the daily bar chart. Bulls have gained a slight bit of strength late this week, but the bears still have the overall near-term technical advantage. 

Meanwhile, as the commodity attempts to consolidate on the support level created around $16,200, BTC looks to have run out of negative impetus. BTC is currently trading below the $18,000 mark, which served as a crucial support level in recent weeks.

As the market began to experience the full repercussions of the collapse of the FTX cryptocurrency exchange, BTC appeared to be in danger of breaking through the level. However, a decline to $10,000 would probably give BTC a substantial support level with the capacity to generate purchasing pressure.

Technical Evaluation Of Bitcoin

The $16,600 and $16,500 resistance levels were moved above. In the most recent slide from the swing high of $17,098 to the low of $16,370, the price passed through the 50% Fib retracement level. In addition, the BTC/USD pair’s hourly chart saw a break over a crucial negative trend line with resistance above $16,600.

As per CoinMarketcap, the price of one bitcoin is currently trading over $16,500 and the 100 hourly SMA.. Near the $16,950 mark, there is immediate resistance on the upside. It is quite close to the 76.4% Fib retracement level of the most recent collapse from the swing high of $17,098 to the low of $16,370.

The $17,000 area is the first significant area of opposition, and closing above the $17,000 resistance level might initiate a continuous wave of recovery. With a break over $17,500, the price may pick up steam and head in the direction of the $18,000 region.

Bitcoin might begin a new slump if it is unable to build momentum over the $17,000 barrier level. The $16,700 level and the 100 hourly SMA provide immediate support on the downside. 

Under $16,350, the price may test the primary support around $16,000, which is the next significant support. Price declines may be possible if there is a definite break below the $16,000 support level.