- The biggest hurdle for Bitcoin is slightly above the current market price.
- Bitcoin risks plunging to lows close to $3,500 as traders continue to lose confidence.
It is important that Bitcoin trends higher and even breaks above $4,000. This move will increase the traders’ confidence who will want to bring BTC/USD above the critical $4,200. Meanwhile, Bitcoin is still in the red at press time with losses amounting to 1.4% on the day. The entire market is swimming in the sea of red with all the top five digital assets showing declines between 0.5% and 3%.
Bitcoin confluence detector levels
The biggest hurdle for Bitcoin is slightly above the current market price at $3,902.39. Bitcoin is exchanging hands at $3,844. The confluence of indicators at the hurdle are the Bollinger Band 1-hour middle curve, 5 SMA 4-hour, 100 SMA 15’ chart, the 38.2% Fibonacci retracement level daily range, Bollinger Band 15’ upper curve, Bollinger Band 4-hour middle curve, 10 SMA 4-hour, 50 SMA 1-hour, 200 SMA 15’ and the 61.8% Fibo.
The second hurdle is seen between $3,902.39 and $3,942.35. The range is characterized by the previous week high, the previous high daily range, the Bollinger Band 1-hour upper curve, pivot point 1-day R1, Bollinger Band 4-hour upper curve, the pivot pint 1-week R1, the pivot point 1-day R1, the pivot point 1-day R2, the 161.8% Fibo daily range, and the pivot point 1-day R3 confluence.
Bitcoin needs to clear these hurdles for a correction above $4,000 in order to pave the way for further gains. However, the asset risks plunging to lows close to $3,500 as traders continue to lose confidence in the digital asset’s ability to trend higher. Before that, buyers will try to find support at $3,822.47 highlighted by the previous low 1-hour, the 38.2% Fibo weekly chart and the pivot point 1-week S3. Another support is support is seen at the 61.8% Fibo ($3,782.51) and between $3,662.62 and $3,702.58 with a confluence of the 100 SMA daily range, pivot point 1-month S1, the 61.8% Fibo 1-minute range, the Bollinger Band 1-day lower curve, and the Bollinger Band 1-day lower curve.
If Bitcoin bears clear this region, expect Bitcoin to plunge further down and possibly find support close to $3,500.
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