- Bitcoin must be supported by a catalyst in order to break above $4,000 and sustain growth past the stubborn $4,200 hurdle.
- The bulls must gather enough energy to clear the hurdle at $4,207.03.
It is now clear that demand-supply trends left on their own cannot support Bitcoin’s much-awaited uptrend. The 4-hour BTC/USD chart shows at least four failed attempts to sustain growth above $4,000 since Bitcoin traded 2019 lows around $3,340. The latest attempt mid-this week saw Bitcoin form a high around $4,057 but lack of strength to push for gains above $4,100 culminated in a sharp drop on Thursday. BTC/USD explored the levels towards $3,900 but found bearing at $3,920.67.
A reversal has since occurred from the weekly lows, although BTC/USD is still stuck below $4,000. Bitcoin must be supported by a catalyst in order to break above $4,000 and sustain growth past the stubborn $4,200 hurdle. The confluence detector tool shows the first resistance at $4,000.10. It is highlighted by the previous high 1-hour, previous high 15-minutes upper, Bollinger Band 15’ upper, 100 SMA 1-hour, 100 SMA 15’, the 23.6% Fib level 1-minute, 5 SMA daily, Bollinger Band 4-hour middle curve, 50 SMA 1-hour, 200 SMA 15, the 161.8% Fib level weekly and the 10 SMA 4-hour.
Above this level, Bitcoin is likely to sail smoothly past the week resistance zones at $4,041.49 and $4,082.87. The bulls must, however, gather enough energy to clear the hurdle at $4,207.03. An area marked by the previous month high, pivot point 1-day R3 and the pivot point monthly R1.
As far as the downside is concerned, the confluence detector places the initial support at $3,958.72. The confluence of indicators at this position include the 10 SMA daily, Bollinger Band 4-hour lower, Bollinger Band 1-hour lower, pivot point weekly R1, the 23.6% Fib level daily, 200 SMA 1-hour, and the 50 SMA 4-hour. The next support target is at $3,875.95 highlighted by the 38.2% Fib level 1’, the 61.8% Fib level weekly and the 200 SMA 4-hour. Below this zone, Bitcoin will not have any strong support zones and could plunge to lows around $3,500 and $3,000.
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Two key dates over the SEC request to freeze Binance assets
Crypto exchange Binance must respond to the US Securities Exchange Commission’s (SEC) order to freeze assets tied to its subsidiary Binance.US by June 12, ahead of a court hearing about the case on June 13, according to the D.C. district court schedule.
Ethereum price declines as Coinbase ETH liquidity staking platform sees mass withdrawals
The US Securities and Exchange Commission’s (SEC) crackdown on Coinbase led to mass withdrawals of Coinbase wrapped staked Ether (cbETH) since Tuesday, acting as a bearish catalyst for the asset’s price.
Dogecoin Price Prediction: History suggests a potential 30% rally in DOGE
Dogecoin (DOGE) price has been trading within a fixed range over the last six months, taking seasonal leaps as volatility increased. With this accumulation pattern, the king of meme coins could be en route to complete the next bounce cycle.
Axie Infinity price recovery delayed despite investor deposits hitting a five-month high
Axie Infinity price, following the broader market cues, is trending downwards for the moment as the bearishness in the market has grown considerably. Incited with the regulatory crackdown by the SEC, the investors have resorted to offloading their holdings for now.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.