Bitcoin Price Prediction: BTC/USD retreat could be necessary for recovery to $9,000 - Confluence Detector
|- Bitcoin rests above $8,600 after the retreat from levels $8,930.
- Further downside momentum appears to be imminent but $8,400 is likely to come out as support.
Bitcoin went crazily bullish for almost two days this week. The surge saw Bitcoin price rise to levels not reached since last November. For now, BTC/USD is dancing at $8,615 after losing 2.26% of its value on Wednesday.
Where Bitcoin goes next after the impressive rally this week is likely to depend on the ability of the bulls to hold the price above the key support at $8,400. In other words, a further retracement seems imminent and is likely to break below $8,500. Meanwhile, let us dive into the confluence support and resistance levels.
Bitcoin confluence levels
The confluence tool places the initial hurdle at $8,652. This zone is home to a cluster of key indicators, including the Bollinger Band daily upper, previous high 15-minutes, SMA five 15-mins, SMA ten 15-mins and the Bollinger Band 15-mins middle. The indicators converge to form the most prominent resistance. Therefore, if broken, Bitcoin could easily tackle the medium strong resistance at $8,742 in readiness for a fly past $9,000.
On the downside, the first support holds the ground at $8,473. Converging in this zone is the pivot one-month resistance two and the previous week high. The only other significant support above $8,000 is at $8,026 as highlighted by the 38.2% Fibo one week. Possible dips under $8,000 could seek refuge around $7,847 and $7.578.
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