Bitcoin Price Prediction: BTC/USD making a persuasive move back to $12,000 – Confluence Detector
- 21st August 2020
- Posted by: Hakeem
- Category: CryptoCurrency
- Bitcoin price clings to newfound support at $11,800; eyes glued on $12,000 as the weekend is ushered in.
- BTC/USD could settle for consolidation on Friday due to low trading volume.
Bitcoin bulls are trying to make a persuasive move above $11,800. The bullish move comes after recovery from levels slightly above $11,600. Looking a few days back, BTC spiked incredibly and even touched $12,500 on Coinbase and other exchange platforms. However, buyers started to lose lift as bears pulled the throttle back, at some point completely pushing the bulls out of the ‘cockpit.’ This led to losses under $12,000 but support above $11,600 came in hand.
At the moment, Bitcoin is exchanging hands at $11,872 as buyers work hard to ensure that the momentum towards $12,000 is not lost. The path to $12,000 has proved to be an uphill task since Bitcoin bounced off support at $11,600. Moreover, more resistance is highlighted by a confluence formed by the 100 SMA in the 1-hour chart and the 38.2% Fibonacci retracement level taken from the last swing high to $12,500 to a swing low at $11,620.
On the downside, initial support is provided by the 50 SMA in conjunction with 23.6% Fibo. Technically, consolidation is expected to take precedence ahead of the weekend session. This sideways trading is stressed by the RSI as it glides horizontally at 50 (midline) and the MACD’s as it clings to the mean line (0.00).
BTC/USD 1-hour chart
Bitcoin confluence resistance and support levels
Resistance one: $11,918 – As highlighted by the pivot point one-day resistance one, the SMA 100 1-hour and the SMA five one-day.
Resistance two: $12,288 – This zone holds the pivot point one-month resistance one and the Bollinger Band one-day upper curve.
Resistance three: $13,151 – Highlighted by the pivot point one-month resistance three and the pivot point one-week resistance three.
Support one: $11,795 – This the strongest confluence support. It is home to the SMA 100 15-minutes, the Fibo 38.2% one-day, the Bollinger Band 1-hour middle, the Bollinger Band 15-minutes middle and the Fibo 23.6% one-day.
Support two: $11548 – As highlighted by the Fibo 61.8% one-week, the pivot point one-day support three, the Bollinger Band 4-hour upper and the Fibo 161.8% one-day.
Support three: $11,178 – Home to the previous week low and the Bollinger Band one-day lower.