Bitcoin Top Price Prediction: Forming a base for the next bullish burst – Confluence Detector
|Contrary to other cryptocurrencies, Bitcoin held up quite well. The percentage of its market cap among cryptos has climbed over 50% over the weekend. What levels should we watch out for now?
The Technical Confluence Indicator shows that the BTC/USD is well-supported. The $6,360 area is the confluence of the Bolinger Band 15-Lower, the Simple Moving Average 5-4h, the Pivot Point one-month Support 1, and the SMA 100-15m.
This point can serve as a springboard. The first target is at $6,412 which is the convergence of the Fibonacci 23.6% one-day, the SMA 10-15m, and the SMA 50-15m. The next target is the $6,450 area which is the congestion of the SMA 5-1h, the Fibonacci 38.2% one-week, and the one-hour high.
Looking down, further support awaits at $6,289 which is the meeting point of the Fibonacci 23.6% one-week and the Fibonacci 61.8% one-day.
Support lines are stronger than resistance ones, indicating a potential for a bullish burst.
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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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