bitcoin Can Bitcoin hold above $17,000 before new year?

Bitcoin is trading at $16764 at the time of writing. The most famous cryptocurrency is struggling below $17,000 as the new year draws nearer.

BTC fades a bit with some profit-taking. Simultaneously, US stocks are in the green territory and provide more tailwinds and help Bitcoin traders build up considerable optimism to plant a bullish flag above $17,000 soon.

Bitcoin price is seeing bulls flirting with the psychological $17,000 level to the upside after the good trading day on Tuesday. Unfortunately, BTC bulls could not close above there, and a small fade outspread, although no big selloff occurred.

Some economists expect this to be a small pause along the way as soon as Bitcoin bulls can penetrate through the psychological level and reclaim the area above there, turning $17,000 into much-needed support.

Bitcoin price finally came back from lowest lows after another selloff last week. Traders are not scared that easily anymore as most of them are getting more and more used to the very volatile trading year, seeing their favourite cryptocurrencies often falling by the impact of the stronger US dollar. On Tuesday, Bitcoin was able to break above $17,000 but unfortunately was not able to close above it as due to profit-taking, which kept going during the ASIA PAC session on Wednesday.

Bitcoin is at the time of writing continuing this small profit-taking, fading below a 1% decline. If bulls can keep their act together, helped by the subdued Relative Strength Index (RSI), more upside looks granted. Certainly, as a calmer and low-volume moment of the year is set to kick in, a grind above $17,000 could provide enough support even to tick $17,600 by Friday if the US session can erase the current fade.

A bit disturbing to see is that not one asset is making big moves that could trigger a domino effect. This could make traders nervous, further limiting their positions, which would not be enough to halt this fade. In that case, the Bitcoin downtrend would get more legs and start flirting with a break at $16,020.