- Bitcoin has been suffering extended selling pressure and lost $10,000.
- BTC/USD may fall to $8,600 if it is unable to break back up.
- Here are the next levels to watch according to the Confluence Detector.
The cryptocurrency correction is in full swing – and may see even more falls. Bitcoin has fallen from a peak of just above $14,000 to below $ 10,000. There is no apparent driver for the recent move – just a climbdown of the rally partially inspired by Facebook's Libra launch.
It seems that the next moves depend on technicals rather than fundamentals.
This is what the Crypto Confluence Detector shows in its latest update:
Bitcoin faces a cluster of resistance lines just below $10,00, at around $9,970 to be precise. This includes the Fibonacci 61.8% one-week, the previous hourly high, the previous daily low, the Pivot Point one-day Support 1, and the Simple Moving Average 10-15m.
Further up, the initial target is $10,447, where we see the convergence of the Fibonacci 38.2% one-day and the Pivot Point one-week Support 1.
The granddaddy of cryptocurrencies will then target $10,700, which is the confluence of the previous 4h-high, the Fibonacci 61.8% one-day, and the SMA 10-4h.
BTC/USD has weak support at $9,328, which is the meeting point of the PP one-day Support 2 and the SMA 200-4h.
Further down, more significant support awaits only at $8,615, which is where the PP one-day S3 converges with the PP one-week S2.
See all the cryptocurrency technical levels.
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