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Bitcoin price prediction: BTC/USD bulls hit the jackpot  - Confluence Detector

  • BTC/USD has a good upside potential.
  • $4,000 remains the key barrier in the short-term.

BTC/USD has been on fire since the beginning of the week. The price retraced from the intraday high of $3,994, but the upside momentum remains strong enough to hope for another ride towards critical resistance zone created by $4,000.

The cryptocurrency market recovery is grounded mostly on technical and speculative factors. As the coins broke free from the recent ranges, the momentum started snowballing. The fundamental factors that might have triggered the upside are few, which means that the rally might prove to be unsustainable after all.

BTC/USD the daily confluence detector

Bitcoin bulls seem to have hit the jackpot. A sustainable move above $3,700 handle gave them strength and allowed to smash another essential barrier of $3,800 on their trip to the moon. 
Now they have to clear $3,900 with a set of strong technical levels clustered above this area. The confluence of technical indicators includes the highest level of the previous hour, the highest level of the previous 4 hours, and the upper boundaries of the Bollinger Band on 4-hour and 15-min timeframe. 

Once it is out of the way, psychological $4,000 strengthened by the Pivot Point 1-day Resistance 1 will come into the focus. It is followed by previous month high at $4,110. 
Basically, the way to the North looks like the path of least resistance as there are few barriers to be taken out. On the downside, it is a bit more crowded.

The support levels are spread evenly from the current price to a critical barrier of $3,600. It is reinforced by several important technical indicators, including DMA50, DMA10, SMA200 1-hour, SMA50 4-hour, 61.8% Fibo retracement Weekly and Monday’s low. If the price goes below this area, the sell-off may continue towards $3,540-$3,530 (SMA100 and SMA200 4-hour, the midline of the Bollinger Band on the daily chart. 

BTC/USD, 1D

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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