Bitcoin and other cryptocurrencies consolidate the significant gains they enjoyed on Monday and are holding their ground. Reports are coming out that Facebook is on a hiring spree in its Blockchain unit. The social media behemoth is reportedly aiming to "reinvent money."
What levels should we watch out for in BTC/USD?
The Technical Confluence Indicator shows that the digital coin faces weak resistance between $3,580 and $3,604 where we see the Bollinger Band 4h-Upper, the previous 4h high, and the BB 15 minute Upper spread out.
The more significant target is at $3,637 which is last week's high.
The good news is that bears will have a hard time pushing BTC back down. Immediate support awaits at $3,505 which is the BB 15 minutes Middle, the previous 1h-low, the Simple Moving Average 100-4h, and the SMA 5-1h.
At $3,495 we find the Pivot Point one-week Resistance 1, the SMA 10-1h, and the SMA 50-15m clustered together.
Last but not least, the $3,670 is a cluster of potent lines including the Fibonacci 61.8% one-week, last month's low and the previous 4h-low.
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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