Bitcoin Price Prediction: Technically targeting $6,800 after the quiet ascent – Confluence Detector
|Cryptocurrencies have turned quiet for a change, demonstrating the lowest volatility since early 2017. The calm is not necessarily bad for bulls, as Bitcoin trades above $6,600. What's next? The digital coin is well supported and may be ready for the next leg higher.
The Technical Confluence Indicator shows that the BTC/USD is currently trading amid a significant cluster of levels around $6,627. The list includes the Pivot Point one-day Resistance 1, the Simple Moving Average 5-one-hour, the SMA 50-1d, the Bollinger Band 15m-Middle, the Bollinger Band 4h-Upper, and the Fibonacci 38.2% one-month.
If Bitcoin breaks higher, it faces a hurdle at $6,710 where we see the Pivot Point one-day R3. The target is $6,800 which is the confluence of the Pivot Point one-week Resistance 2, last month's high, the SMA 100-one-day, and the BB 1d-Upper.
Looking down, there is very strong support at $6,550 which is a dense cluster consisting of the Fibonacci 38.2% one-week, the SMA 200-15m, the SMA 50-1h, the SMA 100-1h, the Fibonacci 38.2% one-day, the BB 4h-Middle, the BB 1d-Middle, the SMA 10-4h, the SMA 10-1d, the SMA 100-15m, the SMA 100-4h, the SMA 50-4h, the SMA 5-1d, the SMA 200-1h, and the Fibonacci 61.8% one-day. It would take substantial downside momentum to see Bitcoin break down below this level.
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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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