Bitcoin Price Prediction: BTC/USD upside capped by one paramount resistance – Confluence Detector
|- Bitcoin is battling the key resistance at $8,696 in the fight to return to levels above $9,000.
- Bitcoin faces a situation of scarce support areas; forcing the buyers to defend the $8,600 support at all costs.
The crypto market has once again started the week in the red. The drab action comes after a very fruitful weekend that saw Bitcoin rise above $9,000. The entire market also corrected upwards on Sunday. However, Bitcoin established a new January high at $9,184 before reversing back into the $8,000 range. The support at $8,500 came in handy, allowing the buyers to push for gains above $8,600.
Bitcoin confluence levels
Confluence levels help to identify resistance and support levels that are valuable in trading. The daily confluence detector places the initial and the most significant resistance at $8,696. Various indicators converge at this point including the SMA ten 15-minutes, SMA ten 1-hour, SMA five 4-hour, Bollinger Bans 15-mins upper, previous high 15-mins and the SMA 100 15-mins.
Bitcoin bulls have one big task; to clear the resistance at $8,696 because heading to $9,000, the hurdles at $8,786 and $8,876 are relatively weak. However, correction above $9,000 will come face to face with more hurdles at $9,236 and $9,326.
Examining the downside, I can tell that support levels are scarce. Therefore, the bulls must be careful and sustain BTC above $8,600 support as highlighted by the previous low 1-hour, Fibo 161.8% one-month, Bollinger Band 1-hour lower and SMA 50 4-hour. Further correction southwards could lead to losses into the $7,000 range. Besides, the next tentative support areas include $7,976 and $7,796.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.