- Bitcoin price strong immediate support gives hope to buyers who target $3,800 in the medium-term.
- The to $3,700 will be an uphill task: key resistance levels must be cleared before a breakout occurs.
The market has been in a downtrend for more than twelve months now. Most of the bullish predictions over the last one year by top industry analysts and experts failed massively. Bitcoin, for instance, instead of making a comeback from the support at $6,000, it plunged massively to new 2018 lows around $3,146. Although the asset recovered slightly towards the end of 2018 and stepped above $4,200, it lost its mojo all over again and spiraled to new 2019 lows at $3,340.
At the moment, Bitcoin is trading at $3,600 after correcting higher 0.27% on the day. As discussed in the price analysis, stepping above $3,600 is likely to reignite recoil to the next hurdle at $3,700.
Meanwhile, Bitcoin technical confluences show that the digital asset is strongly supported by the 4-hour previous low in conjunction with the 4-hour Bollinger Band Lower and the weekly chart 38.2% Fibonacci retracement level. This shows that Bitcoin is poised for an upswing while any movements to the south will be cut short by the strong immediate support. Besides, other support areas that will come in handy include $3,557.33 (1-hour Bollinger band Lower and the 15-minutes Bollinger Band Lower) and $3,520.14 (hourly 200-day SMA).
The road to $3,700 is going to be a rough one according to the Confluence Detector tool. The 23.6% Fib level on the daily chart is the initial resistance. The zone is host to other confluences; the daily 38.2% Fib level and the 4-hour Bollinger band Middle. If Bitcoin buyers manage to clear this level, they must overcome the second critical resistance at $3,668.89 (yesterday’s high). A breakout is expected at this point and BTC/USD will correct higher retesting $3,700 but all eyes are glued on $3,800 in the medium-term.