- Bitcoin bears fall in a trap as BTC/USD bounces to intraday highs.
- The bulls look forward to $3,800 (psychological level): bound to bring $4,000 in sight.
The market has been a beehive of activities today. First, there was a sudden drop in the price of Bitcoin and other major cryptocurrencies like Ripple’s XRP and Ethereum (ETH). Bitcoin price broke tumble below the weeklong support at $3,500 and refreshed the lows in 2019 around $3,480. However, the bulls did not stay down for long as the price immediately bounced back up not only reclaiming the position above the broken support but also zooming higher to trade new intraday highs around $3,578.94.
In fact, at the moment, Bitcoin is trading in the green after bullishly reversing the trend with gains of 0.51% on the day. Other assets like Ethereum and NEO are following in the footsteps of BTC with gains of 0.24% and 0.49% respectively.
Technical Confluence Detector Levels
At present, Bitcoin is trading at $3,550 and is stuck between the 100-day Simple Moving Average (SMA) (offering immediate resistance) and the 50-day SMA (offering immediate support). According to the Bollinger bands the slide today was expected following the constriction due to stability. Bitcoin had consolidated in a similar manner towards the end of last week. However, the constriction culminated in sharp declined when BTC/USD failed to correct above $3,700. Support was established at $3,500.
The Relative Strength Index (RSI) in the 15-minutes time range is almost brushing shoulders with the overbought regions while the Moving Average Convergence Divergence (MACD) is on the brick of cross into the positive territory to show that the bulls are preparing for a comeback.
Meanwhile, marginally above the current BTC value, the initial hurdle is highlighted by the confluence detector tool at $3,567.95. A break above this handle will come face to face with acute resistance at $3,604.86. Further correction north with be limited after BTC/USD steps above $3,800.
Bitcoin does not have as many support levels. The initial support has been established at $3,494.12 while the second one lies at $3,161.89. If the bulls can sustain the price above $3,500 then they can gather support to break above $3,600 and $3,800 (psychological level).
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