The moves in Bitcoin are paling today in comparison to the forked-out Bitcoin Cash. The smaller cryptocurrency is surging on the Bitmain IPO and the Gemini listing. But what about the BTC/USD? The top cryptocurrency is looking for a direction and here are the levels to watch.
The Technical Confluence Indicator shows that Bitcoin first needs to cross the $6,555 level which is the convergence of the Pivot Point one-day Resistance one-day Resistance 1, the Simple Moving Average 50-4h, the SMA 200-1h, and the one-day high. This area is a critical resistance level and breaking it will open the path to softer caps.
At $6,611, the BTC/USD will find the confluence of the Fibonacci 61.8% one-month, the Pivot Point one-day Resistance 2, and the Fibonacci 23.6% one-week.
Above that, there is no significant resistance up to at least $6,754.
Looking down, there are plenty of support clusters. At $6,479 we see a more substantial one including the Simple Moving Average 10-1h, the SMA 5-4h, the SMA 50-15m, the Bolinger Band one-hour Middle, and the Fibonacci 38.2%.
At $6,450 we see the meeting point of the Fibonacci 61.8% one-day, the Bolinger Band one-day Middle, the BB 1h-Lower, and the SMA 50-1h.
Click to see the Full Confluence Indicator
Here is how it looks on the tool:
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.
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This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents 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.
Learn more about Technical Confluence
More: Latest cryptocurrency news
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