Bitcoin Price Prediction: BTC/USD commences consolidation above $10,700 – Confluence Detector

  • Bitcoin price holding the ground above $11,700 to give bulls time to plan recovery above $12,000.
  • BTC/USD bulls must gather the proper volume before launching the rocket above $12,000 to avoid frequent retreats.

Bitcoin price appears to be settling around $11,700 after a minor recovery from Thursday’s slump to levels around $11,500. The reversal back to $12,000 is proving to be an uphill task probably because most analysts predict doom before dawn for the largest crypto by market capitalization.

In other words, Bitcoin delayed reversal after plummeting from $12,500 means that it has limited power for gains at the moment. To achieve significant gains, bitcoin could explore lower levels around $11,100 support. This way, more buyers would enter the market according to the expected upward momentum the proper volume for sustained gains not only above $12,000 but also towards $13,000.

The daily chart shows Bitcoin trading at $11,728, marginally below the accelerated trendline (broken line). Support seems to have been established above $10,700 and reinforced by the RSI as it starts to move sideways at 56. Moreover, the MACD is also sitting in the positive region. It has slowed down the downward momentum after rejection at 660.

The MACD is also holding ground above 440 to show that buying activities are ongoing. However, it’s not enough for significant gains eying $12,000. The influence of the bulls over the price is also emphasized by the gap made by the 50-day SMA above the longer-term 200-day SMA.

BTC/USD daily chart

BTC/USD price chart

Bitcoin confluence levels

Marginally above the prevailing market price, a strong resistance continues to limit efforts put in place from the bullish camp. This initial resistance lies at $11,764 and converges indicators such as the previous high 1-hour, the Bollinger Band 15-minutes upper curve, the SNA 200 1-hour and SMA 50 4-hour. If buyers managed to overcome the resistance in this first zone, they must prepare to deal with more hurdles at $11,886, $12,008 and $12,225.

On the flip side, support levels are in place to hold Bitcoin from plunging closer to $11,000 starting with the confluence at $11,646 as highlighted by the pivot point one-day support one and the previous low one-day. There are multiple medium-strong support areas ranging from $11,521, $11,399, $11,156 and $10,912.

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Ripple Price Prediction: XRP ready to make a comeback as bulls target $0.7

XRP, like the rest of the market, had a significant crash from its peak of $0.78 down to $0.456. The digital asset is currently trying to bounce back up, trading around $0.537, awaiting a clear breakout or breakdown from an ascending triangle on the 30-minute chart.

More Ripple News

Facebook plans to launch a limited version of its cryptocurrency Libra in 2021

The social media giant Facebook may launch its contradictory digital coin Libra as early as in January 2021, the Financial Times reports, citing knowledgeable sources.

More Libra News

Bitcoin show signs of a dead cat bounce while investors hope for prompt recovery

Bitcoin is hovering around $17,000 after a heart-breaking sell-off to $16,200 on Thursday. However, the industry experts warn that the downside correction has just started. 

More Bitcoin News

German finance minister calls for quick decisions on ECB's digital currency

Germany's finance minister, Olaf Scholz, said that Europeans should work very hard to come up with a solution for digital payments, as there is a massive demand for digital money from consumers and businesses.

More Cryptocurrencies News


Gold Weekly Forecast: XAU/USD tumbles to multi-month lows on risk flows, technical selloff

Bitcoin has lived through a roller-coaster week. The pioneer digital currency hit another multi-year high of $19,500 and got really close to the all-time high on Wednesday. 

Read the weekly forecast