Bitcoin price prediction: Did BTC get ahead of itself? Confluence levels

Bitcoin price is back above $10,000. The move from the recent low at $9,757 has brightened investors’ hope after Bitcoin plunged from levels marginally under $11,000. BTC/USD stepped above $10,200 and extended the gains to $10,255 on Friday. However, the buyers lacked the strength to sustain gains above $10,200. At press time, Bitcoin is trading at $10,196 while the downside is supported by the 50 Simple Moving Average (SMA) 1-hour.

The analyst at CNBC, Brian Kelly is not convinced that Bitcoin has the ability to sustain the current uptrend. Kelly predicts that Bitcoin could be heading into a rough patch basing his argument on fundamentals. In fact, he said that Bitcoin got ahead of itself unsupported by fundamentals like the decreasing daily addresses.

Confluence Levels

The confluence detector tool foresees that BTC will run into resistance after breaking above $10,200. The initial hurdle that must cleared for the price to gain strength to assault other barriers is $10,268 - $10,374. Some of the indicators highlighted in this zone are the previous high 15-mins, previous high 1-hour, Bollinger Band 15-mins, Fibonacci 38.2% 1-week, SMA 200 1-hour and the Pivot Point 1-day R1.

After correction above the tough zone, the only bump before $11,000 is $10,799. Converging here are the Fibo 61.8% 1-week, Pivot Point 1-day R3 and SMA 100 4-hour.

On the downside, Bitcoin does not have many support areas. In fact, the only formidable support is $10,056. The support is made possible by the SMA 50 1-hour, previous low 4-h, SMA 200 15-mins, and SMA 10 4-hour. Below this level, Bitcoin could easily gravitate towards $9,000 and even refresh the support at $8,800.

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