Tanya Abrosimova
Independent Analyst
- 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
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?