Bitcoin price prediction: BTC/USD faces support shortage towards $5,000 – Confluence Detector

Bitcoin is having a bearish and drab start to the week. This comes after a weekend characterized by extreme volatility and selling activity. The love for the downtrend took off on Friday following the breaking below $8,000. Various support areas failed to hold including $7,800, $7,500 and $7,300. The losses extended below $7,000 further putting $6,800 under great pressure.

Meanwhile, the price action during the Asian hours has seen Bitcoin dive lows around $6,611 after opening the session at $6,907. With the prevailing high volatility coupled with a developing bullish trend, Bitcoin could recovery above $7,000.

Bitcoin confluence levels

Bitcoin is staring into stacks and stacks of resistance which hints that recovery will not come easy. The confluence tool places the first hurdle at $6,843, the zone where the SMA ten 15-minutes and the Bollinger Band 1-hour lower meet. Slightly above this is the next seller congestion zone at $6,913 as highlighted by the Bollinger Band 15-mins middle. In addition to that, correction above $7,000 will have to brace itself to clear the resistance at $7,053, $7,264 and the strongest resistance at $7,544.

On the downside, support levels are quite scarce. The first weak support is seen at $6,703 and is host to the previous low 15-mins and the pivot point one-day support one. Further down, the next support is at $6,633 and $6,563. He weak support areas in relation to the stacks of resistance levels suggest that Bitcoin is still in danger of dropping to $5,000 or even lower.

More confluence levels