Bitcoin price prediction: Sideways trading to last longer - Confluence Detector

Bitcoin surge above $4,000 towards the end of last week was short-lived following the bear correction this week. The declines happened following a period of stability where Bitcoin has maintained the position above $3,800.

The market’s largest cryptocurrency suffered a blow yesterday leading to a devastating drop from the highs slightly above $4,000 to test the support at $3,350. The sharp fall could not find refuge at $3,800 as the bears intent for revenge sent Bitcoin below $3,500.

As discussed earlier, Bitcoin is likely to drop further towards $3,000 in the coming days. However, the CEO of Civic, a blockchain identity firm, Vinny Lingard places BTC/USD between the levels of $3,000 to $5,000. This prediction takes into account the expected performance of Bitcoin in the next two months. He says that both these levels will test Bitcoin’s ability to break out. On the contrary, if a breakout fails, a breakdown is imminent and Bitcoin might head for the levels below $3,000.

At present, Bitcoin is trading at $3,635.35 after correcting from the lows recorded yesterday around $3,560. The upside is laced with many hurdles starting with the 100-day Simple Moving Average (SMA) which is limiting growth at $3,650. The sideways movement will continue in the remaining sessions on Friday. The weekend trading is likely to remain unchanged if the current technical levels are anything to go by. For example, the Relative Strength Index (RSI) is horizontal at 50 after being ejected from the overbought levels during the Asian trading hours today.

Marginally above the current price, the bulls will encounter the initial resistance according to FXStreet’s confluence detector tool at $3,650.55. Moreover, another hurdle is highlighted at $3,763.86. The highest seller concentration zone is seen at $3,877.17. A correction above this level will be unstoppable until Bitcoin zooms above the broken support at $4,000 where its likely to face resistance at $4,100 and $4,200 respectively.

On the other hand, if the bears send Bitcoin spiraling again, weak support will be found at $3,575.02. Bitcoin's further breakdown will take solace at $3,423.94. Besides, if Bitcoin drops below $3,500 then $3,000 will be well within reach.