- BTC/USD has settled in a new range.
- The recovery might be limited due to technical factors.
BTC/USD slipped to a new range. Now the growth attempts are capped by $3,400, which is a gloomy signal for the bulls as it heightens chances for an extended sell-off. The short-term recovery may be over; new lows are ahead.
BTC/USD the daily confluence detector
Bitcoin’s recovery now hinges on its ability to regain at least $3,400 handle. However, it is easier said than done. The area on approach to $3,400 and rich above this level is riddled with technical levels that might discourage short-term buyers.
The confluence of the indicators includes the lower borders of the Bollinger Bands on a daily and hourly charts, Bollinger Bands Middle line, 15-min, a host of short-term SMA levels, 23.6% Fibo retracement monthly.
However, even if this area is cleared, Bitcoin is not out of the woods as there is a new portion of barriers to be taken out. They include psychological $3,500 guided by 61.8% Fibo retracement daily and 23.6% Fibo retracement weekly. Also, there is a tough hurdle on approach to $3,550-$3,560 area with SMA200 1-hour and SMA50 4-hour as well as 38.2% Fibo retracement weekly.
Meanwhile, the way to the downside is practically clear. Next to no barriers are seen until $3,127, which is the lowest level of the previous month and the last year. This strong support is likely to stop the sell-off, though, if it is cleared, psychological $3,000 will come into focus.
BTC/USD, 1D
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