- BTC/USD recovery stopped at $3,707.
- Bitcoin sandwiched between strong technical levels.
BTC/USD was hovering around $3,600 handle after a volatile Friday when the cryptocurrency market gained over $10B in a matter of hours. While there are no clear fundamental reasons that might have explained the stellar growth, a breakthrough an essential technical resistance at $3,500 gave Bitcoin a massive boost and allowed to test $3,707, the highest level nearly in a month.
The market has entered a profit-taking phase; however, the short-term picture remains positive even despite Bitcoin’s decline over $1.3% on a day-over-day basis.
BTC/USD the daily confluence detector
Considering a thick cluster of stain technical levels around the current price, we may suggest that the coin will continue to oscillate in a narrow range around $3,600 handle. A sustainable move in either direction will set the tone for the nearest future.
BTC/USD recovery is blocked by a strong resistance zone located right above the current price. It is created by the confluence of the following technical indicators: a host of SMA levels, Bollinger Band 1-hour Middle, Bollinger Band 4-hour Middle, Bollinger Band 15-min Middle, 38.2% Fibo retracement daily, 61.8% Fibo retracement daily, 23.6% Fibo retracement weekly.
To overcome this barrier, we need to see a sustainable move above $3,650 and above the recent high at $3,707. This will bring $3,900 into focus, guided by Pivot Point 1-month Resistance 3.
Below the current price, the string support is created on approach to $3,550 (23.6% Fibo retracement monthly, DMA5, Pivot Point 1-week Support 3 and 161.8% Fibo projection Daily.
This area is followed by psychological $3,500 strengthened by SMA100 4-hour, SMA50 4-hour, SMA200 1-hour, Bollinger Band 4-hour Lower, Fibo retracement 61.8% weekly.
Previous week and Previous month low at $3,341 serves as Ain interim support that will open the way towards the previous year low at $3,127.
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.