Bitcoin retests major resistance as bulls eye rally to $17,000

Bitcoin could rally to $17,000 within days if the daily and weekly candle close hits $16,000. Otherwise, sideways trading and retrace to $14,400 is possible in the short-term

Bitcoin continues to show upward strength after struggling for a couple of days with rising pressure. The top cryptocurrency’s bounce off lows of $15,300 saw bulls test the $16,000 hurdle once more as BTC price rose to $15,991 before correcting to its current levels near $15,840.

At the time of writing, Bitcoin price is changing hands around $15,833, with its value up about 3.5% in the past 24 hours.

Although the area around $15,800 has seen sellers stage multiple rejections over the past two weeks, analysts forecast a breakout and close above $16,000 could see BTC/USD rally to $17,000.

According to one analyst, Bitcoin price needs a close above $16,200 on the daily time frame to confirm its uptrend to $17,000.

“BTC: Big breakout for higher-highs on both lower time frames and the daily chart. Bitcoin is getting close to some weekly levels near $16,200, which could get rejected. Close above here on the daily and price likely heads to $17k+ with momentum.”

BTC 1-hour chart

On the 1-hour chart, BTC/USD is above the 100-hourly moving average and is looking to retest the horizontal resistance line that has been in place since the 6th of November. A break above the line on the lower time frame would encourage the bulls going into the daily close.

BTC/USD 1-day chart

The daily chart also suggests that the bulls are in control as the moving averages point north and the Relative Strength Index (RSI) remains in the green territory without being overextended.

If bulls manage a daily candle above $16,000 and carry the same into the weekly close in the next few days, the next barrier could be around $17,200.

With no major headwinds above the level, momentum could take BTC/USD towards a retest of its highest price level at $20,000.

However, a sharp downturn towards $15k and lower could materialise if the $16,000 barrier proves to be too strong short term. The 7th of November lows and the 20-EMA at $14,400 provide a healthy support area should this happen. Beyond this, bulls can rely on massive support at the 50-SMA at $12,654.