Bitcoin Price Prediction: Breaking above $6,592 to get out of the current range – Confluence Detector
Bitcoin is steady in range for quite some time. What will be the next move? Here are the levels to watch.
The Technical Confluence Indicator shows that the $6,592 level is crucial for an upside move. We see here a dense congestion including the Simple Moving Average 50-one-day, the SMA 10-1h, the SMA 10-4h, the SMA 5-1d, the SMA 50-15m, the SMA 100-1h, the Bollinger Band one-hour Middle, the SMA 5-4h, the Fibonacci 38.2% one-day, and the 1h- high. Just a bit above, at $6,612, we see the Fibonacci 38.2% one-month, the Fibonacci 23.6% one-day, the SMA 10-one-day, and the Bollinger Band 15m-Upper.
The next line to watch is $6,704 where we see the convergence of the Bollinger Band 4h-Upper, and the Pivot Point one-day Resistance 2.
Weak support is found at $6,500 which is the Fibonacci 38.2% one-week, the Bollinger Band one-day Middle, and the one-day low.
$6,419 is stronger support: we find the Fibonacci 23.6% one-month, the Pivot Point one-day Support 3, and the Fibonacci 23.6% one-week close by.
All in all, the path of least resistance is currently to the downside and bulls need to break $6,592 in order to convince markets to push the price higher.
Click to see the Full Confluence Indicator
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.
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.
