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  • BTC/USD tested waters below $3,700 handle.
  • Downside pressure may intensify within the next trading hours.

BTC/USD lost 4% of its value since this time on Sunday. The price ventured a move below $3,700 and came dangerously close to DMA200 before a fresh buying interest pushed in back above $3,700, within the previous range. At the time of writing. BTC/USD is changing hands at $3,730 with a downside bias.

The fundamental background is rather quiet, which means the market is driven by sentiments and technical factors. As for the latter, they bode ill for the short-term Bitcoin bulls.
BTC/USD the daily confluence detector

Once the coin moves below the above-said DMA200 (currently at $3,680) the downside movement will gain traction with the next barrier seen on approach to $3,650, It is created by a confluence of technical indicators that include SMA200 4hour, 61.8% Fibo retracement monthly and the lowest level of the previous week.

A sustainable move lower will clear the way to $3,350-$3,330 (Pivot Point 1-week Support2 and the lowest level of the previous month).

The way to the North is a bit more crowded with the first significant barrier seen on approach to $3,800. The cluster of strong technical levels goes all the way up to $3,830. The confluence of technical indicators includes:

  • All sorts of SMA levels, including SMA50, SMA100, and SMA200 on 1-hour chart, as well as SMA5 and SMA10 on 4-hour chart;
  • Fibonacci levels: 23.6% daily, 23.6% weekly, 38.2% daily, 61/8% daily;
  • Bollinger Bands: lower boundary on 4-hour chart and middle line on 1-hour chart

The next resistance comes on approach to $3,900 (38.2% Fibo retracement weekly and monthly). It is followed by psychological $4,000 with Fibo 23.6% monthly located marginally above this area.