Bitcoin Price Analysis: BTC/USD chance of hitting $20,000 skyrocketing – Confluence Detector

After encountering another rejection at $10,000, Bitcoin price is struggling to hold above the intraday support at $9,700. Since Monday, the bulls’ focus has been to break the resistance at $10,000. However, just like Monday and Tuesday, BTC/USD is facing a growing bearish grip on Wednesday.

For instance, at the time of writing, BTC/USD is valued at $9,758 after losing 0.26% on the day. The daily chart shows the possibility of sideways trading taking precedence. A glance at the RSI indicates that the prevailing trend is neither bearish nor bullish. Buyers and sellers are equally strong. Also doubling down on the sideways trend is the MACD; currently in a level motion at 539.

Also read: Bitcoin price rallying to $120,000 as halving impact precipitates – eToro’s analyst Simon Peters

BTC/USD daily chart

Bitcoin options on CME and Deribit bullish

The options traders mainly on CME and Deribit exchange platforms show overwhelming strength and believe that Bitcoin price would continue to rally in the near future. According to a report by Cointelegraph using data by ecoinmetrics, Bitcoin has a 9% chance of skyrocketing to $20,000 by the end of 2020.

However, the traders on these platforms are particularly cautious when it comes to the medium-term trend. It is known that Bitcoin does not rally immediately after the halving. A rally in the past two halvings kicked in six to eight months after the events. This means that even if there will be a rally in the wake of the third halving, the medium-term trend remains uncertain.

Bitcoin price confluence levels

From a confluence perspective, Bitcoin is facing growing resistance at $9,815 as highlighted by the previous high 15-minutes, the Bollinger Band 15-minutes upper curve, the Fibonacci 23.6% one-day and the previous high 4-hour. A break above this zone will be good for Bitcoin as it will allow the bulls to focus on breaking above $10,000. However, it is vital that buyers start preparing for the next hurdle at $10,019 as shown by the pivot point one-day resistance one and pivot point one-month resistance one.

On the downside, immediate support is established at $9,714; a zone where the SMA 50 1-hour, the previous low 4-hour, and the Bollinger Band 4-hour middle curve meet. Another key support holds the ground at $9,511 as highlighted by the previous low one-day and the previous month high.