Bitcoin sideways grinding could swing to $3,700 – Confluence Detector
|- Bitcoin creeps lower from February highs.
- Bitcoin upside is limited and sideways trading has taken over.
Bitcoin seems unbothered by the news that the largest bank in the United States is planning to issue its own cryptocurrency. JP Morgan is currently running trails on JPM Coin and is likely to start operations in five months.
Meanwhile, Bitcoin is exchanging hands at $3,580. It is only a week since the rally that had BTC touch $3,700. The asset has been grinding lower below $3,600, however, the bulls have drawn a line in the sand preventing declines below $3,550.
Unlike the bull rally last Friday, Bitcoin has corrected higher only 0.59% on the day. Generally, the market is in the green with assets like NEO and Litecoin (LTC) leading with gains of 6.3% and 2.93% in that order. Although the bullish momentum cannot be compared to the one seven days ago, the market is poised to record significant gains to the upside in the near-term.
As far as Bitcoin is trading, this sideways trend has shifted the attention from the psychological $4,000 to $3,700. BTC/USD is immediately supported by a confluence of indicators as per the data on the confluence detector tool at 3,558.26; the 4-hour 50-day Simple Moving Average, the daily 23.6% Fib retracement level as well as the 4-hour Bollinger Band 4-hour lower region. It is important that the bulls keep the price above $3,500 in the short-term to allow for higher correction above $3,600. However, if the support broken Bitcoin could tailspin towards 2019 lows at $3,340 and even refresh December low at $3,146.
As mentioned, Bitcoin upside is limited and sideways trading has taken over above the short-term support at $3,550. If the bulls pull out of the prevailing trend and position BTC above $3,600, further gains heading to $3,700 will encounter resistance at $3,632.66 which highlights the daily 50-SMA and the 161.8% Fib level in the same range.
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.