Bitcoin price prediction: BTC/USD bulls doomed to fail at $3,450 - Confluence Detector
- BTC/USD recovery is capped by $3,450.
- $3,350 separates us from 2018 low.
BTC/USD managed to climb above $3,400, but the upside momentum faded away. The first digital coin is stagnant T $3,420, virtually unchanged since the beginning of Monday.
Several cryptocurrency exchanges had to stop operations due to financial problems or liquidity issues. This unwelcome outcome of the crypto winter discouraged investors. Even the news that
Wyoming legalized virtual money as a payment option failed to spark the optimism. Apparently, the market sees the glass half empty at this stage.
BTC/USD the daily confluence detector
BTC/USD recovery is blocked by strong resistance at $3,450-60. This area is packed with significant technical barriers, including a host of SMA levels, Bollinger Band 1-hour Upper, Bollinger Band 4-hour Middle, Bollinger Band 15-min Upper, 38.2% Fibo retracement daily.
Monthly Fibo retracement (23.6%) coupled with Fibo projection 161.8% daily and Pivot Point 1-day Resistance 2 are likely to slow down the recovery on approach to $3,500. And only a sustainable movement above SMA200 4-hour close to $3,600 will signal that the coin is out of the woods for now.
Meanwhile, on the downside, important support lies under $3,350 level. It is created by a confluence of Pivot Point 1-month Support 1, Pivot Point 1-day Support 2, Previous month low and Previous week low. Once this hurdle is out of the way, the sell-off may be extended towards the lowest level of 2018 at $3,127.
Author
Tanya Abrosimova
Independent Analyst
