Bitcoin Price Analysis: Why BTC/USD is tumbling despite COVID-19 uncertainty – Confluence Detector

  • Bitcoin price nosedives under $9,000; extending the breakdown from the rejection at $10,000.
  • Investors continue considering another safe-haven alternative to gold: Will Bitcoin make the cut?

Bitcoin price continues to drum in the negative direction despite efforts by the buyers to break the stubborn resistance at $10,000. In the last 48 hours alone, BTC/USD has tumbled below several key support areas including $9,500, $9,250 and $9,000. Luckily, there were buyers waiting to buy low after Bitcoin quickly rushed towards $10,000 in the wake of its reward halving. A new weekly low has been traded at $8,750 but Bitcoin has already reclaimed the position above $8,900. An intraday high has been formed at $9,124 (a new seller congestion zone).

Can Bitcoin replace gold as the ultimate safe-haven asset?

Bitcoin is tumbling amid calls for it to stand out as the ultimate safe haven in pandemic situations such as the crippling COVID-19. Investors around the world are alarmed by the shocks the stock markets will have to endure amid an almost certain global economic crash. Inflation is set to skyrocket as central banks continue with money printing to cushion the economies from potential falls.

There is also a theory that central banks could push for a policy that outlaws private ownership of gold in order to control inflation. For this reason, Bitcoin remains the most viable alternative to gold as a safe-haven asset. However, Bitcoin is struggling to hold an uptrend and is likely to continue with the dive to $8,000.

Bitcoin confluence resistance and support levels

Resistance one: $9,027 – A seller congestion zone highlighted by the Fibo 23.6% one-day, the Bollinger Band 15-minutes and the previous high 15-minutes.

Resistance two: $9,120 – Home to the previous high 4-hour, the Bollinger Band 1-hour middle curve and the SMA five 4-hour.

Resistance three: $9,494 – This zone hosts the previous month high, the pivot point one-day resistance one and the Bollinger Band 4-hour middle curve.

Support one: $8,840 – A buyer congestion zone highlighted by the previous low one-day, the Fibonacci 38.2% one-week and the Bollinger Band 1-hour upper.

Support two: $8,747 – Is the region hosting the pivot point one-day support one and the Fibo 23.6% one-month.

Support three: $8,560 – Highlighted by the Fibo 23.6% one-week.


Bitcoin intraday key levels 


Today last price 9010.51
Today Daily Change -48.95
Today Daily Change % -0.54
Today daily open 9059.46
Daily SMA20 9300.02
Daily SMA50 8097.18
Daily SMA100 7976.05
Daily SMA200 8055.96
Previous Daily High 9567.69
Previous Daily Low 8800.12
Previous Weekly High 9944.79
Previous Weekly Low 8105.58
Previous Monthly High 9476.83
Previous Monthly Low 6156.67
Daily Fibonacci 38.2% 9093.33
Daily Fibonacci 61.8% 9274.48
Daily Pivot Point S1 8717.15
Daily Pivot Point S2 8374.85
Daily Pivot Point S3 7949.58
Daily Pivot Point R1 9484.73
Daily Pivot Point R2 9909.99
Daily Pivot Point R3 10252.3





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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

BTC/USD bulls fight for every inch of the ground on their way to $10,000

After a sharp sell-off at the beginning of the week, BTC/USD climbed back above $9,000 and made its way above another important resistance $9,300. A shall green candle on a weekly chart is a promising signal, though the market is still gripped with uncertainty at this stage. 

More Bitcoin News

XRP/USD drops below $0.2000 after a failure at $0.2030

XRP/USD tested the intraday high at $0.2031, but the strong resistance located around this area discouraged the short-term bulls and pushed XRP/USD below $0.2000 by press time.

More Ripple News

ETH/USD breaks out into the $220 zone, will it be $230 or $210 next?

Ethereum price followed in the footsteps of the largest cryptocurrency by market capitalization, Bitcoin. BTC sprung upwards and for the first time in seven days, stepped above $9,600.

More Ethereum News

EOS/USD slumps below 4-hour SMA200, focus on $2.54

EOS/USD attempted a recovery above 4-hour SMA200 (currently at $2.65) and touched the intraday high at $2.67. However, the upside momentum proved unsustainable as the price of the digital asset dropped to $2.62

More EOS News


Bitcoin Weekly Forecast: BTC/USD bulls fight for every inch of the ground on their way to $10,000

After a sharp sell-off at the beginning of the week, BTC/USD climbed back above $9,000 and made its way above another important resistance $9,300.

Read the weekly forecast