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Bitcoin Price Prediction: BTC/USD bullish levels to watch after surging amid Chinese yuan devaluation – Confluence Detector

  • Bitcoin has been rising as China has intensified its currency after Trump's tariffs.
  • BTC/USD has surpassed significant resistance and eyes higher levels.
  • Here are the next levels to watch according to the Confluence Detector.

China has devalued its currency and Bitcoin has jumped by some 10% – correlation or coincidence? At first, the timing seemed coincidental and speculation about Chinese money flowing into cryptocurrencies sounded theoretical. 

However, Eunice Yoon, Beijing Bureau Chief, Senior Correspondent for CNBC, has tweeted that chatter on China's central bank social media account has consisted of "There is nothing more to say.  Let’s buy @Bitcoin  to avert the risk." 

While this is far from a full confirmation, there may be something in common between Beijing's yuan moves – one dollar is now worth more than 7 CNY – and the rise in BTC/USD.

The Chinese move is seen as a retaliation to US President Donald Trump's announcement of a new 10% tariff on $300 billion worth of imported goods. The clash between the world's largest economies is weighing on stock markets, but gold and digital assets are on the rise. 

After the granddaddy of cryptos topped $11,800, what are the next levels to watch?

This is what the Crypto Confluence Detector shows in its latest update:

Bitcoin confluence levels August 5 2019

On its way up, Bitcoin has topped fierce resistance at $11,639 – which now turns into support. The line is the convergence of the previous 4h-low, the Fibonacci 61.8% one-month, the Simple Moving Average 50-15m, the Bollinger Band 4h-Upper, the Pivot Point one-week Resistance 2, the SMA 10-1h, and the SMA 5-1h. 

Looking up, the first noteworthy resistance awaits at $12,500 which is where the Pivot Point one-month Resistance 1 hits the price.

Above, $12,880 may slow the rise as it is where the PP 1w-R3 meets the price. The next upside target is $13,238 which is last month's high.

Looking down below $11,639, the next cushion awaits at $11,147 which is the confluence of the SMA 10-5h, the PP 1w-R1, and the BB 1d-Upper. 

 BTC/USD 

See all the cryptocurrency technical levels.

Author

Yohay Elam

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.

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