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26 May 2024
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Cryptocurrency bloodbath as Bitcoin tumbles below $3,500

  • BTC/USD sits in a tight range amid low volatility.
  • The risks are skewed to the downside.

Bitcoin has stuck marginally above $3,500 handle. The first digital coin has been sitting in a tight range since Monday with no signs of an upcoming breakthrough.
It has been relatively quiet on the cryptocurrency market, with little going on. Investors are waiting for the SEC’s decision on crypto ETF and Constantinople update for Ethereum network and ignore other developments. However, the recent calm may turn into a fierce storm once the price starts moving.

BTC/USD the daily confluence detector

While the downside remains the path of least resistance, the coin is in no hurry to move that way. $3,500 handle proved to be strong support; thus, once it is broken, the sell-off may start snowballing and pass the cluster of technical indicators pretty quickly.

Below the current price, the confluence of technical levels includes 23.6% Fibo retracement daily and 38.2% Fibo retracement daily, Bollinger Band 1-hour Lower, Pivot Point Daily Support 1 and Pivot Point Monthly Support 1.

Basically, a sustainable move below the current low of 2019 at $3,480 will break all hell loose and take the price towards $3,126 – the lowest level of 2018.

On the upside, the initial resistance is created by a confluence of strong technical indicators located right above the current price. They include a set of SMA levels, 61.8% Fibo retracement daily, 23.6% Fibo retracement weekly, Bollinger Band 1-hour Middle.

Once this barrier is out of the way, the price may creep higher, though the recovery is likely to be stopped by another hurdle on approach to psychological $3,600. It is strengthened by Pivot Point -day Resistance 2, 38.2% Fibo retracement monthly, and 38.2% Fibo retracement Weekly.

The next barrier lies with $3,750. This area is guarded by DMA50. Bollinger Band 1-day Middle and Pivot Point 1-week Resistance 1.

Source: fxstreet

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