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6 June 2023
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Bitcoin to tank below $3,000 before true recovery starts – Morgan Creek’s Pompliano

  • BTC/USD stays under $3,800 amid thin liquidity.
  • The critical resistance is created by $4,000 handle.

Bitcoin settled under $3,800 level, consolidating losses incurred during thin holiday market. The coin has been very quiet in Asia, mostly unchanged since this time on Wednesday and down 1.6% since the beginning of Thursday. The Christmass is over, the Santa’s rally came to an end; now the market is expected to stay lo-profile ahead of the New Year as many traders won’t return to their trading desk until the end of the year.

BTC/USD the daily confluence detector

Bitcoin bulls might have a hard time pushing the price above the current level as the area is packed with strong technical levels, that include a host of SMAs, Bollinger Band, 15-min Upper, Bollinger Band, 1-hour Middle, previous 4-hour high and previous 15-min high as well as 38.2% Fibo retracement daily.

While the initial resistance is located at $3,800 a move higher will hardly bring any relief to Bitcoin bulls, as the there is a new pack of barriers waiting for them: 38.2% Fibo retracement weekly, 23.6% Fibo retracement daily,  Bollinger Band, 1-hour Upper, SMA10 daily,  Bollinger Band, 4-hour Middle, previous daily high, SMA50 4-hour, SMA100 and SMA200 1-hour, 23.6% Fibo retracement weekly, and Pivot Point daily Resistance 2.

This area goes as high as $4,000. And that’s the ultimate bulls’ goal for the nearest future. Once above, the price may recover to $4,200 guarded by Bollinger Band 4-hour upper, and 23.6% Fibo retracement monthly.

Meanwhile, the support area below the current price is no less crowded. Bollinger Band 15 min Lower, SMA200 4-hour and Previous 1-hour low create an immediate barrier, followed closely by Bollinger Band 1-hour Lower, previous day low, previous 4-hour low and Pivot Point 1-day Support 1. Bears need to push the price below $3,700 to clear them all.

The next support lies with $3,600 with SMA100 4-hour, Bollinger Band 1-day Middle and Pivot Point daily Support2 on approach. Previous month low guard $3,500 handle, which is the key to critical $3,300.


Source: fxstreet

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