- Bitcoin price lags breakout above a descending trendline resistance likely to blast it above $8,700 and $8,000 respectively.
- The stacks of resistance zones at $8,754, $8,933 and $9,112 hint BTC/USD that recovery is likely to take longer.
Bitcoin price has pushed for recovery on Monday during both the Asian and European sessions. However, an intraday high formed at $8,695 has left the resistance at $8,700 tested but not broken. BTC/USD has, instead, adjusted lower towards the first support at $8,600. The largest cryptocurrency by market capitalization is trading at $8,620 and is holding on to the 1.13% gains accrued on the day.
BTC/USD is immediately supported by the 60 SMA on the 1-hour chart. On the flip side, the immediate upside is limited by a descending trendline. A sustained breakout above the trendline is likely to open the door for movement towards $8,800. For now, the path with the least resistance is sideways according to the RSI currently leveling at 56.
Bitcoin confluence levels
Confluence resistance and support levels are essential in anticipating resistance and support areas based on multiple technical indicators. In this case, Bitcoin is facing the first resistance at $8,664; a region that holds the Fibonacci 38.2% one-day, the previous high 15-minutes, the Bollinger Band 15-mins middle, and the SMA ten 15-mins. A break above $8,700 will come face to face with more resistance at $8,754 highlighted by the pivot point one-day resistance one and the previous high one-day. The strongest resistance holds ground at $8,933 and $9,112.
On the downside, BTC/USD is doddering slightly above the initial support at $8,574 a zone where the 61.8% Fibo one-day, the BB 15-mins middle curve and SMA 200 15-mins converge. The second and strongest support is observed at $8,485 as shown by the Bollinger Band 1-hour lower curve and BB 4-hour lower. Other key levels to watch include $8,216, $8,126, $8,037 and $7,857.
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