Bitcoin price prediction: BTC/USD crashes below $3,400, more pain to come

BTC/USD broke below the lower border of the range.
The risks are skewed to the downside despite the recovery from the recent low.

BTC/USD crashed to as low as $3,376 during early Asian hours. While the price has recovered to $3,427 by the time of writing, the technical picture looks gloomy, A sustainable drop below $3,500-$3,480 area, which includes a psychological barrier and the previous low of the year, sets the stage for further declines with the next aim at $3,127 (2018 low).

BTC/USD the daily confluence detector

Bitcoin’s recovery depends on whether it manages to get back above $3,500 within the next trading hours. The adjustment seems likely as the intraday RSI stays on the oversold territory; however, there are no signs of the upcoming reversal as of yet.

Below the current price, the closes support is created at $3,400 by a confluence of 23.6% Fibo retracement level monthly and the Pivot Point Weekly Support 3. It is closely followed by the lower border of the Bollinger Bands on a daily chart ($,3382). Once this support area is cleared, there is little to stop the bears until $3,300-$3,3290, strengthened by the Pivot Point Weekly Support 2.

On the upside, the first barrier is seen on approach to $3,350. It is created by the lower border of the Bollinger Band 15-min and the Pivot Point Monthly Support 1. However, the bulls will have to take out $3,500 resistance, guarded by 23.6% Fibo retracement, both weekly and daily.

On the whole, the move to the North is riddled with numerous technical barriers, which means that the downside is the path of least resistance at this stage. Oly a sustainable move above $3,560 will mitigate the downside pressure and keep short-term bears at bay. This area is strengthened by the midline of Bollinger Band on 4-hour chart, SMA200 1-hour, SMA5 daily and 38.2% Fibo retracement monthly.

BTC/USD, 1H

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