This Chart Resistance Breakout Is Crucial To Kickstart Bitcoin Price Recovery

The Bitcoin price has been trapped between the $16300 and $16920 barrier for the last two weeks, creating a narrow range. This consolidation phase in the crypto market shaped the bitcoin price into a double-bottom pattern. This pattern displays itself as the letter W and is one of the most common technical chart patterns observed in market bottoms. 

Key points

• The area between the $16300 and $16920 mark can be considered a no-trading zone.
• Considering the high possibility, a bullish breakout from $16920 will replenish the trapped bullish momentum.
• The intraday trading volume in Bitcoin is $16.2 Billion, indicating a 22.9% gain.

Source-Tradingview

The Bitcoin price action forming a W letter projects that the coin has rebounded twice from the same horizontal support level ($16300) and keeps the neckline resistance($16920). Amid the recovery sentiment in the crypto market that has arisen since the beginning of 2023, the Bitcoin price rebounded from the $16300 support and rose 3.65%, and hit the $16920 barrier.

The bullish recovery backed by rising volume indicates a sustained recovery in prices. By the press time, the Bitcoin price trades at $16855 and still struggles to break the neckline resistance.

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Thus, until the BTC price wavers between the mentioned level, the potential traders should avoid entering the market. 

Conversely, a daily candle closing above $16920 will trigger the bullish pattern and intensify the underlying bullish momentum. The post-breakout rally may drive the coin price 2.6% higher and surpass another resistance barrier of $17360.

Technical Indicator

RSI: while the Bitcoin price is still moving sideways, the RSI slope, which determines the strength in recent price action, is moving upwards. Thus, this positive divergence indicates a higher possibility for a $16920 breakout.

Bollinger band indicator: the recent recovery has pushed the coin price above the indicator’s midline, indicating bullish sentiment among the coin traders. However, the upper band of the indicator resides near $16920, increasing the resistance power if the level.

Bitcoin Price Intraday Levels

• Spot rate: $16855
• Trend: Bullish
• Volatility: Medium
• Resistance levels- $16930 and $17360
• Support levels- $16330 and $15600