Bitcoin Price Analysis: ETF delay not delaying the rally, $8,663 next target – Confluence Detector
Bitcoin continues enjoying the summer surge, for five good reasons. Despite a potential delay in assessing the requests for an ETF approval, the digital currency continues setting new 3-month highs. What's next?
The Technical Confluence Indicator shows that the BTC/USD has an initial hurdle around $8,490, which is the convergence of the one-day high and the Bolinger Band one-hour Upper (Standard Deviation 2.2). Further above, $8,532 is the Pivot Point one-week Resistance 2.
The more significant target is at $8,663 which is the confluence of the Pivot Point one-month Resistance 2 and the Simple Moving Average 200-one-day.
On the downside, some support is found at $8,389 which is the congestion of the SMA 100-15m, the BB 15m Middle, and the SMA 5-1h. Lower, $8,295 is the meeting point of the SMA 504h, the 4h low and the Fibonacci 23.6% one-day.
Another notable area is around $8,200 which is the meeting point of the SMA 100-15m and the Fibonacci 38.2% 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.
