Bitcoin price prediction: Bulls shoo away from $4,000 - Confluence Detector
|- BTC/USD recovered from $3,900
- The upside momentum is fading away.
Bitcoin (BTC) managed to recover from $3,900, though it is still below $4,000 handle. The first digital coin is changing hands at $3,977 at the time of writing following a short period of strong growth during early Asian hours. We may be entering another consolidation phase as the upside momentum recedes on approach to the critical resistance,
Cryptocurrency experts are sceptical about the sustainability of the recent rally.
“Bitcoin cannot escape $4k resistance even after poking its head above it the last week. If dip buyers have not come to the rescue yet, it means they are not coming. An investment that refuses to go up will eventually go down. Bitcoin owners need to be prepared for more near-term weakness,” analyst Jani Ziedins of the CrackedMarket blog commented.
Bitcoin confluence levels
Above the current price, we have 23.6% Fibo retracement level, upper boundary of the 15-min Bollinger Band and previous hour high. These technical levels strengthen $4,000 resistance and make it harder to breakthrough. However, once it is cleared, the recovery may be extended towards $4,050 (previous week high and Pivot Point 1-week Resistance 1). A sustainable move higher will open the way towards $4,200 (pivot point 1-week resistance 3 and pivot point 1-month resistance 1)
The way to the South looks more complicated as the area below the current price is packed with strong technical level that include a host of important SMA levels (SMA200 1-hour, DMA10, SMA50 4-hour), 38.2% Fibo retracement weekly, lower and middle line of 15-min Bollinger Band.
38.2% and 23.6% Fibo retracement daily are likely to stop the downside on approach to $3,900, which is also strengthened by the lowest level of the previous day, SMA200 4-hour and 61.8% Fibo retracement daily. The next barrier is seen at $3,800 strengthen by DMA50.
BTC/USD 1D
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