Bitcoin price bounces from key support, run-up to $16,500 in the offing?

Bitcoin has reclaimed the position above $16,000 after a supporting seeking weekend. The bellwether cryptocurrency hit new yearly highs at $16,500 last week but embarked on a retreat. The bearish outlook saw Bitcoin explore levels under $16,000. However, the bearish leg was not left to cause substantial damage to the progress made, with BTC/USD bouncing off support slightly above the 50 Simple Moving Average (SMA).

In the meantime, Bitcoin is dancing with $16,000 amid a renewed bullish momentum during the Asian session on Monday. The Relative Strength Index (RSI) gives credibility to the bullish narrative with its recovery above the midline. If the indicator sustains motion heading to the overbought, more buyers will be encouraged to join the market and perhaps create enough volume for gains eyeing $16,000.

BTC/USD 4-hour chart

For now, the path of least resistance appears to be to the upside mainly due to the robust support accorded to BTC. As the volume expands, Bitcoin price is likely to continue with the run-up to $16,500. Trading above $16,500 will open the road to $17,000 while the remaining journey to $20,000 will ride on the fear of missing out (FOMO).

Apart from the 50 SMA in the 4-hour timeframe, the flagship cryptocurrency will seek refuge at $15,000 (100 SMA) in case of a reversal. Other key support levels include $14,500, the 200 SMA and $13,500.

For now, defend the position at $16,000 is key to the much-anticipated breakout to $16,500. On the other hand, price action below the short term key support might trigger losses towards $15,000.

Bitcoin Intraday Levels

Spot rate: $16,000

Relative change: 24

Percentage change: 0.15%\

Trend: Bullish

Volatility: Expanding