Bitcoin Price Analysis: BTC/USD approaching $10,000 again – Confluence Detector
With Bitcoin getting close to the critical $10,000 resistance level, it’s important to look for areas and points of resistance around this level. BTC/USD is trading at $9,800 at the time of writing.
The Technical Confluence Indicator is not showing a lot of resistance points towards $10,000. The major resistance area is close at $9,821 where the Pivot Point 1 Week R1 is currently standing.
The next resistance point is at $9,906 where the Pivot Point 1 Day R2 is set, other than that, Bitcoin has a clear path to $10,000.
Buyers looking for a strong support level should consider $9,702, where the SMA 5, 4H, the middle Bollinger Band on the 4H, and the previous daily high are currently converging.
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacent price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
