Bitcoin price prediction: BTC/USD increasing volume spells a breakout – Confluence Detector

  • The bulls are anxiously waiting for a correction above $3,900.
  • Bitcoin’s daily trading volume is still elevated above the $10 billion mark.
  • If the breakout fails and Bitcoin turns around, expect it to clear the support at $3,800 and move towards $3,700.

The cryptocurrency market is breaking out as I settle down to draft this incredible piece on the largest digital asset by market capitalization Bitcoin. The outlook of the market shows green everywhere with most cryptos recording gains between 05% and 5%. It is likely that cryptocurrencies led by Bitcoin will close the week trading in the green having corrected from the intraday lows.

The 4-hour BTC/USD shows Bitcoin trading at $3,884 after breaking past the 50 SMA resistance. The bulls are anxiously waiting for a correction above $3,900. A move that is likely to reignite further upwards movement towards $4,000.

Meanwhile, Bitcoin’s daily trading volume is still elevated above the $10 billion mark. The volume is defying the technical theory that investors lose interest amid periods of price consolidation. However, the current consolidation is likely to culminate in a breakout as far as the price-volume analysis shows.

As far as technical levels are concerned, the confluence indicator tool places the initial vital resistance at $3,894.51. This zone is host to a confluence of indicators including the 5 SMA 4-hour, the 100 SMA 15’chart, the 38.2% Fibonacci level daily chart, Bollinger Band middle curve 1-hour, the previous high 15’ chart, previous high 1-hour and the Bollinger Band 4-hour upper. A second hurdle is seen at $3.934.86 highlighted by the previous high 1-day, the pivot point 1-day R1 and the previous week.

Above this level, Bitcoin will face some of the weakest resistance zones. If supported by the high daily volume, we could see a breakout towards $4,200 allowing the bulls to stage another journey to $4,500.

Meanwhile, if the breakout fails and Bitcoin turns around, expect it to clear the support at $3,800 and move towards $3,700. There are other weak support levels at $3,854.27, $3,813.98, $3,773.69 and $3,733.39.

Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel

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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Opportunity in Bitcoin for bargain hunters

First, the strong bullish move yesterday by Bitcoin, which gained more than $1,000 in 60 minutes. The movement has placed the BTC/USD pair above all major moving averages and opens the door to further rises in the absence of relevant resistance.

More Bitcoin News

Ripple’s XRP recovery from April lows marks the beginning to breakout

Ripple has dived massively from the recent highs. The breakout above both the 50 Simple Moving Average (SMA) 1-D and the 100 SMA 1-D propelled XRP past critical hurdles. For the first in 2019, the price exchanged hands above $0.5. 

More Ripple News

Litecoin market overview: LTC/USD oversold and ready to bounce

Litecoin is showing signs of exhaustion from the downtrend experienced from the beginning of July. Recovery to June highs around $146 has been impossible with the path of least resistance having an affinity to the south.

More Litecoin News

Ethereum 2.0 January 3, 2020 launch date remains unconfirmed

The Ethereum ecosystem is preparing for what is known as the biggest milestone for the network, Ethereum 2.0. The new protocol is still in the development stages and researchers have recently told the community that it is possible that there will be a delay in the launch.

More Ethereum News

Bitcoin Weekly Forecast: BTC bulls get ready for a major assault

The cryptocurrency market has been pretty volatile this week. Bitcoin stayed in the green zone despite wild price gyrations, while major altcoins are nursing double-digit losses on a week-on-week basis.

Read the weekly forecast