Cryptocurrencies are free-falling with Bitcoin leading the pack with a drop to the lowest levels in a year. Ethereum is on the back foot as well. Was it the words of Christine Lagarde, Managing Director of the IMF? Lagarde said central banks should have cryptocurrencies of their own. In any case, what levels should we watch?
The Technical Confluence Indicator shows that Vitalik Buterin's brainchild has some support at $172 where the Pivot Point one-month awaits it.
Further down, $158 is where we see the Pivot Point one-month Support 1. Both are weak levels with no additional lines between them.
Looking up, there some room for recovery, but up to a point. $187 is the confluence of last month's low with the Pivot Point one-week Support 2.
There are additional lines on the way up but the top line of resistance is at $198 where we see a dense cluster including the Bollinger Band 15 minute Middle, the PP one-month Support 1, the Bollinger Band 4h-Lower, the Simple Moving Average 5-1h, the Fibonacci 23.6% one-month, and last week's low.
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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.
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