Bitcoin price prediction: Recovery of a dead-cat bounce? - Confluence Detector
|- BTC/USD is hovering under $3,500, off the recent highs.
- The key support is seen at $3,200.
Bitcoin bulls managed to engineer a strong recovery towards $3,580. The coin gained over 14% from the recent low of $3,140 touched on Saturday, December 15. While the price retraced below $3,500 to trade at $3,491 by press time, the coin is still 8% higher since this time on Monday. A collapse under SMA200 (weekly) proved to be short-lived as new buyers popped in at new lows and saved the game.
Whether it is is a true reversal or a dead cat bounce remains to be seen. Some experts believe, that Bitcoin long-term bulls will capitulate once the price drops under $3,100. As long as we stay above, not all is lost.
BTC/USD the daily confluence detector
BTCUSD is changing hands at $3,491, off Monday's high reached at $3,580; The price is consolidating gains after a strong rise; however, we will need to see another bullish breakthrough sooner rather than later to make sure that the recovery is here to stay.
Below the current price, BTC/USD is supported by 61.8% Fibo retracement level (weekly) and a previous month low registered at $3,466. Once this local barrier is passed, the downside correction may be extended below $3,400 towards $3,370 guarded by a confluence of technical indicators, including 38.2% Fibo retracement weekly and SMA10 daily. This area is closely followed by another cluster os SMAs coupled with 61.8% Fibo retracement daily.
A sustainable movement under psychological $3,200, strengthened by previous day and previous week lows will reverse the upside movement.
Above the current price, the closest resistance is created by a host of technical levels, including SMA5 15-min, SMA10 15-min, SMA10 1-hour, SMA5 1-hour, 4-hour Bollinger Band Upper, and 15-min Bollinger Band Middle. Once it is cleared, the recovery may be extended towards the previous day high at $3,580 and to $3.600. Another strong resistance is created on approach to $3,680 by Pivot Point 1-day Resistance 1 and 1-day Bollinger Band Upper.
Pivot Point 1-week Resistance 2 comes right under a critical resistance of $3,800.
BTC/USD, Daily
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