- BTC/USD returns to $3,400 after short-lived recovery.
- Brea below this support will crash BTC towards 2018 low.
BTC/USD is hovering around $3,400 as the market is clueless as to where to go next. An active resistance area located right above the current price limits feeble recovery attempts, while bears are not incentivized enough to proceed with short bets.
A slew of positive fundamental news keep the market from a more profound collapse, but will we see a genuine recovery? Only time will tell.
BTC/USD the daily confluence detector
Psychological $3,400 is strengthened by a confluence of strong technical levels, including a host of short-term SMA levels. Bollinger Band 15-min both lower and middle boundary, Bollinger Band 1-day Lower.
A move higher will improve the technical picture, but further recovery may be limited by even stronger resistance created by SMA100 and SMA50 on 1-hour, SMA200 15-min, SMA10 4-hour, 38.2% Fibo retracement daily, Bollinger Band 1-hour Upper.
The next significant barrier lies with $3,550, guarded by 23.6% Fibo retracement Monthly, 38.2% Fibo retracement Weekly and Pivot Point 1-day Resistance 3. However, it is worth noting that the area between the current price and the above said $3,550 is packed with technical levels, which means that the trip to the North is going to be hard.
Meanwhile, on the downside, there are few important support levels until $3.155, strengthened by Pivot Point 1-month Support 1 and Pivot Point 1-month Support 3. It separates us from 2018 low at $3,127.