Bitcoin price traded to a new multi-month high close to $16,500 against the US Dollar. BTC is now signaling a downside correction and it could test the $15,200 support.

This past week, bitcoin started a strong upward move above the $15,500 and $15,800 resistance levels against the US Dollar. The BTC/USD pair even rallied above $16,000 and settled well above the 100 simple moving average (4-hours).

It traded close to the $16,500 level and formed a new multi-month high at $16,493 before starting a downside correction. There was a break below the $16,200 support level.

Bitcoin price declined below the 50% Fib retracement level of the upward wave from the $15,442 swing low to $16,493 high. Moreover, there was a break below a major bullish trend line with support at $16,000 on the 4-hours chart of the BTC/USD pair.

The bulls are now protecting the $15,800 support level. The next key support is near the $15,690 level or the 76.4% Fib retracement level of the upward wave from the $15,442 swing low to $16,493 high.

If there is a clear break below the $15,690 level, the price could continue to move down towards the $15,250 and $15,200 support levels. The price must stay above the $15,000 support zone to avoid a larger decline towards the $14,500 level.

If bitcoin stays above the $15,690 and $15,200 support levels, there are chances of a fresh increase. An initial resistance on the upside is near the $16,200 level.

The next major resistance is near the $16,450 and $16,500 levels. A clear break above the $16,500 level may perhaps open the doors for a larger increase towards the $17,000 level.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly losing momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is just below the 50 level.

Major Support Level – $15,690

Major Resistance Level – $16,200

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