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Bitcoin price prediction: $4,000 is broken, but don’t get too excited  - Confluence Detector

Published 03/21/2019, 05:37 AM
Updated 03/21/2019, 05:38 AM
© Reuters.
BTC/USD
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BTC/USD
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  • BTC/USD might have hard time moving towards $4,200.
  • The way to the downside is packed with technical levels.

Bitcoin (BTC) has moved marginally above $4,000, though further upside is still constrained by a confluence of strong technical indicators located right above the current price. The resistance area goes up to $0.4050 and include:

* the highest levels of the previous day, hour and 4-hour interval, as well as the lowest levels of the prvious hour and 15-min interval; * Upper boundaries of Bollinger Bands on 1-hour, 4-hour, 15-min and daily charts, midline of 1-hour Bollinger Band. * 38.2% and 23.6% Fibo retracement daily; * a host of SMA levels.

A sustainable move above this area will release the upside potential of BTC and create technical conditions for further upside towards $4,167 (previous month high) and psychological $4,200.

A formidable support lies right below the current price. It consists of SMA50 1-hour, SMA10 4-hour, DMA5, SMA200 15-min, 61.8% Fibo retracement daily, and 161.8% Fibo projection weekly.

It is closely followed by SMA100 1-hour, 23.6% Fibo retracement monthly, lower line of 1-hour Bollimber Band and midline of 4-hour Bollinger Band.

All in all, the support zone lasts until under $3,800, which means that the way to the downside is more complicated. If the price goes below this area, the sell-off will gain traction with the next focus on $3,650 guarded by 61.8% Fibo retracement monthly.

BTC/USD, 1D

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