Bitcoin price prediction: BTC/USD claws back some grown still no hope for bulls - Confluence Detector
|- BTC/USD stays marginally above $3,400 amid bearish sentiments
- The recovery is limited due to technical factors.
BTC/USD stays marginally above $3,400 after a short-lived drop to $3,341 on Tuesday. The first digital coin is consolidating losses; however, the sell-off may be resumed amid sour market sentiments and significantly worsened technical picture.
BTC/USD the daily confluence detector
While Bitcoin managed to regain $3,400 handle, further recovery is limited by a strong resistance area created by a confluence of various technical indicators.
The barrier starts right above the current price and goes all the way up until $3,460. It consists of the lower borders of the Bollinger Bands on 15-min and hourly charts, Bollinger Bands Middle line, 1-hour, a host of short-term SMA levels, 61.8% Fibo retracement daily, the lowest level the previous week, and a combination of the upper line of Bollinger Band on an hour chart and a lower line on a daily chart.
If this area is cleared, the upside may be extended towards psychological $3,500 guarded by SMA100, 1-hour, and $3,550-$3,560 area closely followed by SMA100 4-hour and 38.2% Fibo retracement monthly. A sustainable move above $3,600 will improve the short-term technical picture and allow for extended recovery towards $3,800.
On the downside, the immediate support is created by 23.6% Fibo retracement monthly and the lower line of the Bollinger Bands on 1-hour chart. Another set of Fibo retracement levels (23.6% and 38.2% daily) are located on the approach to recent low at $3,341.
If the price dips below this barrier, the sell-off may be extended towards $3,300-$3,290 (psychological level and Pivot Point 1-week Support 2).
The ultimate support lies with the lowest level of 2018 at $3,127
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