Bitcoin Price Forecast: BTC/USD bulls aim for $11,600, but strong resistance restricts movement – Confluence Detector


  • BTC/USD has strong resistance levels at $12,300 and $11,615.
  • Correlation between BTC and gold has reached all-time high levels

BTC/USD daily confluence detector

fxsoriginal

BTC/USD has gone up from $11,568.60 to $11,596 as bulls continue to flirt around the $11,600 line. As per the daily confluence detector, there are two strong resistance levels at $12,300 and $11,615.

The $12,300-level has the Previous Month high. $11,615 has a strong confluence level highlighted by the one-week Fibonacci 61.8% retracement level and one-day Fibonacci 23.6% retracement level. $12,300 has the one-week and one-month Pivot Points resistance-one.

On the downside, we have healthy support levels at $11,525 and $10,600.

$11,525 has the Previous Month high. $10,600 has the Previous Week low. Finally, the $10,600-level has the Previous Week low.

Bitcoin and Gold Correlation

The monthly correlation rate between gold and Bitcoin has recently reached an all-time high of 70%, surpassing the peaks recorded in 2018 and 2019, according to Skew Analytics.

Skew Analytics noted that such high correlation rates echo Bitcoin's narrative as a safe haven during times of uncertainty. As governments and central banks are increasingly printing more money to "save" their economies, investors appear to be switching from fiat currencies (prone to inflation) to harder assets. 

In an earlier interview with KMID, Donald Trump, the President of the US, said that the next round of COVID-19 packages "may go higher" than the previous series of $1,200 per individual. He added:

I'd like to see it be very high, because I love the people. I want the people to get it.

Because of government spending like this, Bitcoin and gold have surged in price throughout 2020. BTC reached a yearly high of $12,000 just as gold hit a historic $2,000 per ounce. However, both markets have fallen back significantly in recent times. They have been positively correlated. Bitcoin dropped by 4% to $11,200 a recently while gold suffered its worst slide in more than seven years. 

Popular Bitcoin critic and a gold advocate, Peter Schiff, took to Twitter to calm gold investors. 

Notably, the RSI indicates that gold is currently overbought and is close to a sell-off, while Bitcoin is still in a market equilibrium zone. RSI is an indicator that shows whether buyers or sellers are dominating a market. 

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


Latest Crypto News & Analysis

Editors’ Picks

ETH eyes $3,000 as network activity explodes and scarcity grows

Ethereum has finally hit a clear new all-time high across all exchanges, and it’s currently under a healthy consolidation period. Over the past week, Ethereum’s dominance over the market increased from 13% to 17%, while Bitcoin lost close to five percentage points. 

More Ethereum News

Ripple is South Korea’s most popular cryptocurrency, but price stays pressured

XRP/USD bounces off intraday low of 0.2647, stays below 21-day SMA for fifth day. As per the latest report from Messari, Bitcoin and Ripple are the most popular cryptocurrencies in South Korea. The research relies on the data from Bithumb, Corbit and Coinone for the fiscal year 2019.

More Ripple News

XLM Price Forecast: Stellar primed for a 10% short-term upswing amid massive network expansion

Stellar had tremendous success in 2021, reaching a high of $0.411 after a massive 230% price explosion. The digital asset has outperformed several other coins, including Bitcoin, and could be poised to rise even higher amid positive metrics shown by the Stellar Development Foundation (SDF).

More XLM News

BTC rally back to $40,000 in jeopardy as Grayscale’s demand diminishes

Bitcoin is trading slightly above $33,000 after plunging from January’s peak near $42,000. Investors, speculators, and analysts believe that the pioneer cryptocurrency can hit price levels beyond $40,000. 

More Bitcoin News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC is on track to $100,000 despite the recent correction

After hitting a new all-time high of $41,950, Bitcoin had a major 31% correction down to $28,850. For the most part, this pullback is considered healthy as past price action indicates it’s normal for the flagship cryptocurrency to experience 30-40% corrections during a bull rally.

Read the weekly forecast

BTC

ETH

XRP