Bitcoin Price Analysis: The Facebook and Google rethink opens the door to $8,300 and beyond – Confluence Detector
Bitcoin surged on the news that Facebook and Google are now open cryptos. Facebook allows ads from Coinbase and Google includes digital coins in its converter. After flirting with $8,000, what's next?
The Technical Confluence Indicator shows that the BTC/USD has an initial hurdle at $8,030 which is the convergence of the one-hour high, the four-hour high, and the 3-month high. Close by, $8,066 is the Pivot Point one-day Resistance. The next point to watch out for is $8,091 which is the Bolinger Band 15 minute Upper.
Beyond this line, there are no resistance levels until at least $8,303, the upper limit of our chart. Tomas Salles notes that the next level to watch is $8,594. That would be a surge of some 15% from the current price.
Looking down, Bitcoin has significant support at $7,929 which is the confluence of the Bolinger Band four-hour Upper and the Pivot Point one-week Resistance. The next line to watch is $7,792 which is the meeting point of the Bollinger Band one-day Upper, the BB one-hour Middle, and the Simple Moving Average 5-4h. The ultimate line of defense is at $7,705 which is high point seen last week, last month, and the Simple Moving Average 10-4h.
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.
