Bitcoin hit a new low just above $4,000 on Tuesday and stabilized since then. Many are asking: is the sell-off over and BTC/USD can conquer $5,000? Or will the granddaddy of cryptocurrencies lose $4,000? Technical levels provide some hope for the bulls.
The Technical Confluence Indicator shows that Bitcoin ists above a critical convergence at $4,515. The area consists of the Bolinger Band 15m-Middle, the Pivot Point one-week Support 2, the Simple Moving Average 5-1h, and the SMA 5-4h.
Looking up, resistance at $4,591 is weaker than the support line mentioned earlier. The lines include the SMA 10-4h, the Fibonacci 61.8% one-day, and the previous hourly high.
Looking beyond, a Bitcoin bull rally can target the $4,800 area where we see the Bollinger Band one-day Lower and the Pivot Point one-day Resistance 1. These are not very strong levels and such a run could open the door to recapturing $5,000.
Further down, another noteworthy cushion awaits at $4,439. It consists of the SMA 10-1h, the BB 1h-Middle, and the SMA 100-15m.
Looking up, there is some resistance
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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