- BTC bulls are losing conviction after rejection again above $41K.
- Bull-bear tug-of-war likely to extend amid healthy battle lines on either side.
- $38,800 is key support, $41,400 offers stiff resistance.
Bitcoin (BTC/USD) has turned south, having failed to find acceptance above the $41,000 level once again for the third straight session on Sunday.
Although the no.1 coin doesn’t seem to have topped out as yet, a corrective downside remains in place amid a bunch of healthy resistance levels stacked up.
Let’s see how the world’s most dominant crypto asset is positioned technically.
The Technical Confluences Indicator shows that the price has slipped back below the $40K barrier, with $38,800 seen as the powerful support. The level is the confluence of the previous day low and Fibonacci 23.6% one-week.
Acceptance below the latter could trigger a sharp drop towards $37,600, which is the pivot point one-day S2.
The next significant cushion for the BTC buyers awaits around $37K, where the pivot point one-month R2 lies.
Alternatively, recapturing the $40K level (Fibonacci 38.2% one-day) is critical to resuming the journey towards the record highs of $41,987.
Further up, $40,400 (Fibonacci 61.8% one-day/ SMA10four-hour) will challenge the bulls’ commitment, as they look to regain the $41K threshold.
Meanwhile, the intersection of the previous day high and Bollinger Band one-day Upper at $41,400 could offer stiff resistance.
Here is how it looks on the tool
About Confluence Detector
The TCI (Technical Confluences Indicator) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
Learn more about Technical Confluence
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