Bitcoin Price Analysis: accumulating gains for the next ascent, $7,530 could unleash the upside – Confluence Detector
After the big surge early in the week, Bitcoin has been consolidating its gains. The BTC/USD is well supported and breaking above one significant level is the key to the upside.
The Technical Confluence Indicator shows that the $7,530 level is the all-important Pivot Point one-month Resistance 1. The broad timeframe makes the level critical for any upside move.
A break above the level opens the door to a surge higher, with only minor levels slightly slowing down such a potential rally. The $7,605-7,625 area consists of the Simple Moving Average 100-one-day and the Pivot Point one-day Resistance 1.
The next upside target is $7,717 which is the Pivot Point one-day Resistance 2. From there, the next hurdle is already above $8,000 at $8,034.
$7,439 is immediate the current battleground with the dense cluster of the Bolinger Band 15m-Middle, the SMA 100-15m, the BB one-hour Middle, the one-hour low, and the SMA 10-1h.
The pair is well supported at $7,392 with the Pivot Point one-week Resistance 3 and the Fibonacci 61.8% one-day.
Click to see the Full Confluence Indicator
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.
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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
