Bitcoin price prediction: BTC/USD consolidates gains above $4,000 - Confluence Detector
- $4,000 turns into a strong support.
- Bitcoin futures expiration might create volatile trading conditions.
Bitcoin (BTC) consolidates above $4,000 handle, though the upside lacks momentum. BTC/USD is mostly unchanged both on a day-on-day basis and since the beginning of Friday.
The volatility may grow later during the day due to the expiration of CME’s March Bitcoin contracts.
Bitcoin confluence levels
A strong support area is spotted right below the current price. $4,000 handle turned from a tough resistance to a formidable support, enhanced by a confluence of technical indicators.
The include 23.6% Fibo retracement daily, 38.2% Fibo retracement daily, 61.8% Fibo retracement weekly, lower boundary of Bollinger bands on 15-min and 1-hour charts and a host of important SMA levels.
Bitcoin bears will need to push the price below $3,950 guarded by SMA100 on 4-hour and 1-hour charts, 23.6% Fibo retracement weekly and 38.2% Fibo retracement weekly. A sustainable move lower will trigger a new sell-off wave with the focus on $3,750.
Above the current price, the resistance areas goes until $4,100 and consists of 61.8% Fibo retracement daily, upper line of Bollinger Band on 1-hour chart and also upper lines of Bollinger bands on daily and 4-hour charts, 161.8% Fibo projection daily. Once it is cleared, the recovery may be extended towards $4,186 (previous month high) and psychological $4,200.
BTC/USD 1D
Author
Tanya Abrosimova
Independent Analyst
