Bitcoin price prediction: Bogged down in a range before another death spiral - Confluence Detector
|- BTC/USD continues consolidating with a bearish bias.
- The critical resistance $4,000 is out of reach as of yet.
Bitcoin has been rangebound since the beginning of the week. Recovery attempts haven't yielded in a sustainable rally, and the prices returned to the range limited by $3,600 on the upside and $3,300 on the downside. Lack of fundamental news and a sense of indecision on the cryptocurrency market lead to technical trading, which means that a decisive breakthrough in either direction will lead to a strong directional movement.
BTC/USD the daily confluence detector
BTCUSD is changing hands at $3,363, off the Asian high reached at $63.428; an unsuccessful attempt to settle above psychological $3,400 pushed the price towards the lower border of the above-mentioned range, though the downside movement lacks momentum so far. Daily RSI stays flat, close to the oversold territory, signaling that more consolidation is in store at this stage.
There is not much in terms of support levels below the current price; however, the previous week's low and psychological $3,200 may hold off the bears for the time being. Once it is cleared, the sell-off may be extended towards critical $3,000 with Pivot Point one-month Support 1 located right under this handle.
The trip to the North promises to be much more interesting and challenging due to numerous technical indicators clustered all the way up until $3,800, which is considered a pivotal mid-term resistance that needs to be cleared before we can proceed to $4,000.
Above the current price, the first notable resistance is located on the approach to $3,450, enhanced by a confluence of technical indicators including SMA5 daily, SMA5 4-hour, SMA100 1-hour, and 38.2% Fibo retracement level daily. However, the way to this area is riddled with smaller technical resistance levels including SMA50 1-hour, 61.8% Fibo retracement daily and Bollinger Band 15-min Upper.
Above $6,800 the recovery may be stopped by SMA200 1-hour and Previous High 1 Day on approach to $3,500. Stronger resistance area is registered on approach to $3,630 with 38.2% Fibo retracement weekly.
BTC/USD, daily
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