Big Picture: Failure to break through the midpoint has triggered the much-anticipated drop back into the lower support zone. Previous reports warned of the possibility of downward pressure if Bitcoin fails to break through the Mid-level. Overall, the market is trading between 18,200 and 15,500 levels, while trading below 16,850 favors sellers. The pressure is expected to continue; however, a stronghold above 16,850 is required to offset this pressure.
On the Upside initial resistance has resurfaced at 16,800. Bitcoin’s major pivotal point sits between 16,850 and 16,920. Getting above these levels is likely to initiate a wider corrective move, with the primary aim being 17,180, followed by 17,520 level. Profit-taking is predicted to be aggressive near the 17,520 level. Moreover, in order to unlock further upside potentials, Bitcoin must provide at least 2-3 daily closings above 17,640.
On the Downside Bitcoin has tested the 16,550 mark several times with positive reactions each time. Lower support levels are still effective, but buyers have been unable to maximize the emerging opportunities. However, if prices fail to make a substantial recovery and fail to reclaim the 16,920 mark, then it is likely to face further pressure and might fall considerably lower towards 16,230 and possibly towards November’s lows.