Bitcoin price prediction: $4,000 is broken, but don’t get too excited

BTC/USD might have hard time moving towards $4,200.
The way to the downside is packed with technical levels.

Bitcoin (BTC) has moved marginally above $4,000, though further upside is still constrained by a confluence of strong technical indicators located right above the current price. The resistance area goes up to $0.4050 and include:

* the highest levels of the previous day, hour and 4-hour interval, as well as the lowest levels of the prvious hour and 15-min interval;
* Upper boundaries of Bollinger Bands on 1-hour, 4-hour, 15-min and daily charts, midline of 1-hour Bollinger Band.
* 38.2% and 23.6% Fibo retracement daily;
* a host of SMA levels.

A sustainable move above this area will release the upside potential of BTC and create technical conditions for further upside towards $4,167 (previous month high) and psychological $4,200.

A formidable support lies right below the current price. It consists of SMA50 1-hour, SMA10 4-hour, DMA5, SMA200 15-min, 61.8% Fibo retracement daily, and 161.8% Fibo projection weekly.

It is closely followed by SMA100 1-hour, 23.6% Fibo retracement monthly, lower line of 1-hour Bollimber Band and midline of 4-hour Bollinger Band.

All in all, the support zone lasts until under $3,800, which means that the way to the downside is more complicated. If the price goes below this area, the sell-off will gain traction with the next focus on $3,650 guarded by 61.8% Fibo retracement monthly.

BTC/USD, 1D

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram