Bitcoin continues consolidating after the big move higher, holding up nicely but not challenging the highs. Nevertheless, the cryptocurrency has more support than resistance, indicating that the next move is to the upside.
The Technical Confluence Indicator shows that the BTC/USD has substantial support at $8,240, which is the convergence of the Simple Moving Average 50-15m, the SMA 50-1h, the SMA 5-1h, the Bolinger Band 15m-Middle, and the SMA10-4h. The concertation of these potent support lines outweighs the soft, immediate resistance cluster at $8,318. At that point, we see the Bolinger Band 1h-Upper and the Fibonacci 61.8% one-day meet.
The next significant resistance is at $8,537 which is the all-important Pivot Point one-week Resistance 2 backed up by the Bolinger Band 4h-Upper.
Looking down below the immediate support line, we find a backup close by. The area around $8,200 consists of the Fibonacci 38.2% one-day, the SMA 100-15m, the Bolinger Band 1h-Middle, the SMA 5-4h, and the BB 15m Lower. The next notable confluence of support lines is at $8,060 which is the one-day low and the Bolinger Band 4h-Middle.
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.
Learn more about Technical Confluence
More: Latest cryptocurrency news
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