Bitcoin price prediction: BTC/USD lethargic under $4,000 - Confluence Detector
- BTC/USD cannot overcome the key barrier due to the lack of momentum.
- A sustainable move above $4,000 with provide a much-needed boost.
BTC/USD managed to recover above $3,900 handle after a short-lived dip to $3,869 on Thursday. However, the upside momentum is too weak to take it above the critical resistance area. Considering an extended period of consolidation, we cannot rule out a big breakthrough out of the range in either direction ahead of the weekend.
BTC/USD the daily confluence detector
All significant technical levels are clustered above the current price. This resistance zone goes up to $4,000 handle and prevents BTC from entering into a steady recovery phase. As soon as this mega hurdle is out of the way, bulls will take the situation under control and push the price towards $4,400 (Pivot Point 1-month Resistance 2) with a potential to reach $5,000.
On the downside, it is a bit more crowded. The first support line comes at $3,800. It is strengthened by 161.8% Fibo projection daily and 61.8% Fibo retracement monthly.
Once this area is cleared, a more significant support zone of $3,630-$3,600 will come into view. A confluence of technical indicators clustered within the above-said area includes DMA50, middle line low Bollinger Band on a daily chart, SMA100, 4-hour, 38.2% Fibo retracement monthly and Pivot Point 1-week Resistance 1.
The next barrier comes as low as $3,500 with 23.6% Fibo retracement monthly and a Pivot Point 1-month Support 1.
Author
Tanya Abrosimova
Independent Analyst
