Bitcoin price prediction: BTC/USD stuck under $4,000 - Confluence Detector
|- BTC/USD bulls are out of breath ahead of critical resistance.
- A sustainable move above $4,000 is needed.
BTC/USD is sitting right under $4,000 as the upside momentum seems to be fading away. The cryptocurrency community got excited with the idea of JPM Coin and the potential of deeper cryptocurrency integration with the traditional financial sector. But is it enough to push the market out of the year-long bearish trend?
Obviously, we will know the answer pretty soon, but for now, Bitcoin is sitting in a tight range sandwiched between strong technical levels.
BTC/USD the daily confluence detector
The bullish trend ran out of steam as the prices bumped into a strong resistance created on approach to $4,000 level. The confluence of technical indicators clustered above the current price includes a host of SMAs, 61.8% Fibo retracements daily and the midline of Bollinger Band on 15-min chart.
This area is closely followed by the next bundle created by DMA100, Tuesday’s high and the upper boundary of Bollinger Band on 1-hour chart.
Once the price is above $4,000, the highest level since January $4,110 will come into focus, followed by Pivot Point 1-month Resistance 2 on approach to $4,400.
The way to the South is more crowded with technical levels. The initial support lies at $3,850. It is created by the upper boundary of Bollinger Band daily and followed by 61.8% Fibo monthly. A sustainable move below this level will bring $3,730 into focus with SMA100 (1-hour), the midline of the Bollinger Band on 4-hour chart, 161.8% Fibo projection both weekly and daily.
A stronger barrier is created on approach to $3,600 with DMA50 and 61.8% Fibo retracement weekly. Also, there are multiple SMA levels around $3,650, that may slow down the downside correction and create an excellent jumping-off ground for Bitcoin bulls.
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