Bitcoin price prediction: squeezed in a range - Confluence Detector
|- BTC/USD stuck in an area crowded with technical levels.
- A sustainable move above $3,800 is needed before we can proceed to $4,000.
Bitcoin managed to recover from Sunday's low to trade in the middle of $3,600-$3,700 range by the time of writing. However, the upside momentum has faded away and left the price in a tight range with no clear short-term direction. The recent speculations about Russia's plans to purchase Bitcoins to the tune of $10B were not confirmed by official statements, which means that the potential positive effect was bound to be short-lived.
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BTC/USD the daily confluence detector
There are a lot of strong technical indicators on both sides of the current price. This technical setup adds credibility to the suggestion that the coin may stay in the range for the time being, though a sustainable breakthrough in either direction will trigger a strong movement.
On the upside, the resistance zone comes all the way up to $3,800. That's where the strongest bundle of technical indicators is noted. They include a host of SMA levels., 38.2% Fibo retracement level weekly and Bollinger Band 1-day Middle. However, the bulls will have to pass 23.6% Fibo retracement level Weekly, SMA200 4-hour and an upper line of 4-hour Bollinger Band at $,3700-$3,720, before they get to the above said critical area.
Once $3,800 is cleared, there will be little in terms of resistance up until psychological $4,000.
On the downside, the interim support is created at $3,560. It is the previous week low and 38.2% Fibo retracement 1-month. This area separates us from a deeper decline towards a confluence of technical indicators clustered around psychological $3,400; they include Pivot Point 1-day Support 2 and 23.6% Fibo retracement monthly.
Once below, the sell-off may continue towards $3,330 (Pivot Point 1-week Support 2) and to the recent low of the lowest level of 2018 $3,127.
BTC/USD, 1D
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