- Bitcoin is stuck in a wide range between $8,800 and $7,800.
- The support at $7,800 must be defended at all costs because of the weak support towards $7,000.
Bitcoin has revisited the areas below $8,000 mid through this week’s trading. The price struggled to stay above $8,000 during the Asian session on Wednesday. However, the pressure from the sellers coupled with increasing selling volume overwhelmed the bulls. BTC/USD touched an intraday low of $7,937 which has given way for the current drab recovery aiming for $8,000.
Bitcoin Confluence levels
Bitcoin has been going through a series of up and down movements over the past few weeks. One level that has come out strong is the support at $7,800. This region has been tested severally without giving in. Besides, the bounce from the level has resulted in significant movements above $8,000. For instance, the most recent correction pulled above $8,300 before hitting a snag at $8,350.
On the upside $8,800 is the most significant barrier. Trading above this level has been unsustainable on several accounts. Meanwhile, Bitcoin has been left to dance between the wide range of $8,800 and $7,800. If Bitcoin clears this resistance once again, chances of rising above $9,000 will be huge. However, a breakdown under $7,800 could easily force Bitcoin to $6,400 (a key support during 2018’s downtrend).
For now, the confluence detector highlights $8,086 as the most critical resistance zone. It is home to the previous high 4-hour, Fibonacci 38.2% one-week, Fibonacci 23.6% one-day and the Simple Moving Average ten one-hour among other indicators. If broken and the bulls will find a catalyst supported by increasing bullish volume, Bitcoin could easily tackle $8,500 hurdle and grind towards $9,000.
The confluence tool can tell that Bitcoin’s risk of dropping beneath $7,000 is massive. The support highlighted at $7,754 is medium-strong. The indicators that converge here are the pivot point one-week support 1 and the previous month low. The remaining support areas towards $7,000 are almost none-existent.
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