Bitcoin price prediction: All eyes glued on $3,400, and CME New Futures Contract – Confluence Detector

Bitcoin is down a mere 0.92% on Tuesday. The asset is battling to reverse the trend and reclaim the position above $3,400 following the sudden sharp declines that took place yesterday (Asian trading hours). The downtrend prevailed through the day as Bitcoin formed new 2019 lows at $3,340. Recovery has taken place from the new lows of January 2019 and Bitcoin price is trading within the confines of a core support range between $3,000 and $3,500.

The new futures contract on CME opened on Monday while Bitcoin and the majority other digital assets in the market bled. While Bitcoin took a downturn refreshing the yearly lows, CME futures were also stuck in a bear trend. There is a possibility that the opening of the new contract could have affected the price of Bitcoin and by extension the entire cryptocurrency market. In the past, there have been claims that Bitcoin price is manipulated using futures contracts. The founder of Fundstrat and a leading analyst in the market Tom Lee was once reported saying:

“Bitcoin sees dramatic price changes around CBOE futures expirations. This was something flagged by Justin Saslaw at Raptor Group. We compiled some of the data and this indeed seems to be true. Overall, Bitcoin has fallen 18 percent in the 10 days prior to CBOE contract expiration.”

Bitcoin price Confluence Detector technical levels

As mentioned, Bitcoin bulls are fighting tooth and nail to ensure that BTC zooms above $3,400. It is immediately supported by the 100-day Simple Moving Average (SMA) in the 15’ time range coupled by the 23.6% Fibonacci retracement (daily range). The Bollinger Band 1-hour middle is also in a position to prevent the price from reversing the trend. Much stronger support is seen at $3,131 (2018 low as well as December 2018 low).

A correction past $3,400 will hit a snag at $3,449.60 highlighted by the 38.2% Fib level (daily range), Bollinger Band 1-hour upper channel and the 50-day SMA (1-hour range). In the medium-term term, Bitcoin is expected to correct above $3,500 before losing momentum at $3,555.57 which coincides with the 10-day SMA (daily range).