Bitcoin price prediction: BTC/USD drives the wave of Santa's rally - Confluence Detector
|- BTC/USD jumps above $4,200 amid thin liquidity.
- The critical support is created by $4,000 handle.
Bitcoin hovers under $4,200 after a short-lived ride to $4,234 during early Asian hours. The digital coin No.1 has been growing strongly on Monday amid thin market conditions. The market sentiments improved significantly during the previous week, allowing the market to enjoy its Santa's rally.
BTC/USD the daily confluence detector
Bitcoin bulls need to clear the resistance area located right above the current price. It is created by a confluence of technical indicators, including 23.6% Fibo retracements monthly, Bollinger Band 1 hour Upper, Bollinger Band 15 min Middle, Pivot Point 1-week Resistance 1, SMA5 15-min, SMA5 1-hour, and SMA10 15-min.
Once those hurdles are out of the way, the price won't meet any resistance until $4,650, strengthened by 38.2% Fibo retracement Monthly. This strong technical level is likely to trigger some profit-taking amid low liquidity trading. The correction may be as violent as the recent growth as thin liquidity creates high volatility.
Meanwhile, the support area below the current price is riddled with numerous technical levels. They include 161.8% Fibo retracement weekly, Pivot Point 1-week Resistance 3, 4-hour Bollinger Band Upper, 15-min Bollinger Band Lower, previous week's high and previous 1-hour low.
A sustainable movement below that is most likely to increase the downside pressure on BTC with the next aim at $4,000. This psychological level is strengthened by 38.2% Fibo retracements daily, 23.6% Fibo retracement daily, SMA50 1-hour, SNA100 1-hour, SMA200 15-min, Bollinger Band 4-hour Middle and Previous 4-hour low.
Once below, the sell-off may be extended to $3,700 guarded by Pivot Point 1-week Support 3.
BTC/USD, 1D
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