Bitcoin price prediction: Bulls are up to something? - Confluence Detector
|- BTC/USD is dancing around $3,800 amid rangebound trading.
- We need to see a move above $3,900 to get a chance for an extended recovery.
BTC/USD is changing hands marginally above $3,800 amid quiet trading session. The digital coin No.1 has been oscillating in a tight range after strong movements at the end of the previous week.
Meanwhile, Bitcoin and cryptocurrencies, in general, continue gaining traction both among everyday people and institutional investors. Thus, Bitcoin transaction volumes surpassed Paypal the second year in a row evidencing the growing popularity of the asset. Moreover, Samsung presented a new device with native cryptocurrency wallet that supports BTC, ETH and a couple of lesser-known altcoins.
BTC/USD the daily confluence detector
There is a cluster of critical technical levels right above the current price that goes all the way up to $3,900. The confluence of barriers include:
* All sorts of SMA levels (SMA50 1-hour, SMA50 4hour, SMA200 1hour, DMA10, DMA100 among others)
* Fibonacci retracement levels (38.2% daily, 61.8% monthly, 38.2% weekly, 23.6% weekly)
* Pivot Points (1-day Resistance 3, 1-month Resistance 1)
* Bollinger Band lines (1-hour middle and upper, 4-hour middle, 15-minutes upper, lower and middle)
Once we manage to pass this area packed with resistance levels, psychological $4,000 will come into focus. The next interim barrier is seen at $4,100 and $4,187 (the previous week high).
On the downside, the support area below the current price is created by 23.6% Fibo retracement daily, the lower boundary of Bollinger Band on 1-hour chart, Pivot Point 1-day Support 1. We will need to see a move below $3,800 to pass this area.
SMA100 (4-hour) located at $3,50 creates the next interim barrier on the way down. It is followed by DMA100 on approach to $3,700 and DMA50 at $3,620. A critical obstacle lies with 23.6% Fibo retracement monthly on approach to $3,500.
BTC/USD, 1D
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.