Bitcoin and other cryptocurrencies are drifting listlessly and as we have learned from the recent past, this can a calm before the storm. The previous move was a dead cat bounce and we know it can be deadly.
In order to prevent another fall to the abyss, BTC/USD needs to climb, and fast.
The Technical Confluence Indicator shows that $3,840 is a critical level to overcome. It consists of the Fibonacci 61.8% one-week, the SMA 50-15m, the Fibonacci 23.6% one-day, the SMA 10-15m, and the SMA 10-1h.
Bitcoin bulls must recapture it. If they succeed, the next hurdle at around $3,900 is already a minor one including the Bollinger Band 15 minutes Upper, the SMA 10-4h, and the Fibonacci 38.2% one-day.
Further above, the target is $4,050 which is the Fibonacci 38.2% one-week, the Pivot Point one-day R1, and the SMA 5-one-day.
Yet if the initial resistance line works, BTC/USD could suffer a free-fall to $3,466 which is 2018 low and also the Pivot Point one-month Support 1.
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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