- Bitcoin is stuck in a wide range between $8,800 and $7,800.
- The support at $7,800 must be defended at all costs because of the weak support towards $7,000.
Bitcoin has revisited the areas below $8,000 mid through this week’s trading. The price struggled to stay above $8,000 during the Asian session on Wednesday. However, the pressure from the sellers coupled with increasing selling volume overwhelmed the bulls. BTC/USD touched an intraday low of $7,937 which has given way for the current drab recovery aiming for $8,000.
Bitcoin Confluence levels
Bitcoin has been going through a series of up and down movements over the past few weeks. One level that has come out strong is the support at $7,800. This region has been tested severally without giving in. Besides, the bounce from the level has resulted in significant movements above $8,000. For instance, the most recent correction pulled above $8,300 before hitting a snag at $8,350.
On the upside $8,800 is the most significant barrier. Trading above this level has been unsustainable on several accounts. Meanwhile, Bitcoin has been left to dance between the wide range of $8,800 and $7,800. If Bitcoin clears this resistance once again, chances of rising above $9,000 will be huge. However, a breakdown under $7,800 could easily force Bitcoin to $6,400 (a key support during 2018’s downtrend).
For now, the confluence detector highlights $8,086 as the most critical resistance zone. It is home to the previous high 4-hour, Fibonacci 38.2% one-week, Fibonacci 23.6% one-day and the Simple Moving Average ten one-hour among other indicators. If broken and the bulls will find a catalyst supported by increasing bullish volume, Bitcoin could easily tackle $8,500 hurdle and grind towards $9,000.
The confluence tool can tell that Bitcoin’s risk of dropping beneath $7,000 is massive. The support highlighted at $7,754 is medium-strong. The indicators that converge here are the pivot point one-week support 1 and the previous month low. The remaining support areas towards $7,000 are almost none-existent.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Vitalik Buterin slams controversial gambling project ZKasino following scam allegations
Ethereum founder Vitalik Buterin took to Warpcaster, a new type of social network, to condemn ZKasino, a decentralized gambling platform based on Layer 2 Ethereum protocol zkSync.
Starknet jumps 2% after notice inviting specific groups to claim STRK airdrop
Starknet Foundation addressed the groups within the STRK community that were unable to receive the token’s airdrop during the first round. The Layer 2 chain organized an airdrop event in February.
XRP price capped at $0.55 despite retail holdings nearing all-time highs
Ripple price (XRP) failed to break resistance at $0.55 early Wednesday as traders continue to digest Ripple’s recent response to the Securities and Exchange Commission’s (SEC) allegations of illegally selling XRP as a security.
Binance founder Changpeng Zhao could face three-year jail time
US prosecutors are requesting Binance founder and former CEO Changpeng Zhao (CZ) to serve a three-year jail time, according to a Reuters report published Wednesday.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?