Bitcoin Price Prediction: BTC/USD fresh selloff targets $5,500 – Confluence Detector

The current crypto carnage comes as a surprise to many across the landscape. Instead of the end of the year rally as high has been the norm for the past few years, but cryptocurrencies have been caught in the middle of losses that threaten to/or have already erased year-long gains.

The cryptocurrency market update earlier today took into account the $10 billion wiped off the market in less than 24 hours. The losses are an extension of the selloff that took place on Monday. Prior to the losses, cryptocurrencies experienced widespread consolidation over the weekend.

Read more: Bitcoin Price Analysis: BTC/USD downtrend unstoppable towards $5,500-top Analyst predicts

Bitcoin confluence levels

As for Bitcoin, the price is dancing at $6,631. Subtle bullish sentiments are growing across the market, however, the selling pressure is quite overwhelming. The Initial resistance is seen at $6,648 and functions as a converging point for indicators like the previous high 15-minutes, previous high 1-hour and the SMA ten 15-mins.

The stacks of resistance zones towards $7,000 hint that upward movements will continue to be limited. Some of these levels include $6,717, $6,786, $6,854, and $6,992. Moreover, a break above $7,000 will face more hurdles at $7,130, $7,267 as well as $7,336.

Due to the charts looking a bit awful, Bitcoin’s path of resistance remains to the downside. However, some key support areas can be spotted at the following confluences: $6,579, $6,510 and $6,235. In the event, the price spirals into the $5,000 range, expect BTC to test $5,500.

Confluence detector