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15 June 2024
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Bitcoin price prediction: squeezed between the rock and the hard place – Confluence Detector

  • BTC/USD stays under $3,800 amid low trading activity.
  • More rangebound trading may be in store towards the end of the year.

Bitcoin is hovering under $3,800 level. The first digital coin has lost about 10% since the recent peak of $4,234, reached on December 24. The cryptocurrency market is plagued by thin liquidity and low trading activity due to the Christmas and New Year holiday season. It means that traditional and digital assets alike are hibernating in tight ranges. However, it is worth noting, that low liquidity may cause strong exaggerated movements.

BTC/USD the daily confluence detector

Currently, BTC/USD is well supported by a confluence of strong technical indicators, including a host of SMA levels, Bollinger Band 4-hour Middle, Bollinger Band 1-hour Lower, Bollinger Band 15-min Lower, previous 1-hour low and previous 15-min low.

There is also 23.6% Fibo retracement weekly level and Pivot Point 1-day Support 1 under $3,750 handle. Once this barrier is cleared, the downside may be extended towards $3,600, guarded by the previous week low and Bollinger Band 4-hour Lower.

The next support is seen at $3,560 (Pivot point 1-month Support 1 and Pivot point 1-week Support 3).

The upside movement won’t be an easy one. The initial resistance zone starts right above the current price and goes to $3,880. It is created by a confluence of various technical indicators, including Bollinger Band 15-min Lower, Bollinger Band 15-min Upper, Bollinger Band 1-hour Middle, 23.6% Fibo retracement daily, 38.2% Fibo retracement weekly, 38.2% Fibo retracement daily, SMA100 15-min, SMA10 1-hour, SMA10 4-hour.

A sustainable movement above the said resistance zone will open up the way towards $3,900 guarded by Pivot point 1-day Resistance 1 and a stronger hurdle at psychological $4,000 with Bollinger Band 4-hour Upper on approach.

Meanwhile, the ultimate resistance is seen at $4,234, which is the previous week’s high, strengthened by the Pivot Point 1-week, Resistance 1.


Source: fxstreet

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