- Bitcoin has been rising in the wake of the new week after a sleepy weekend.
- BTC/USD has overcome robust resistance and has few technical hurdles.
- Here are the next levels to watch according to the Confluence Detector.
The Fed has been watching Facebook's Libra – and sees the potential for systemic risk. Over two billion Facebook users may have access to a cryptocurrency and the chance of a rapid adoption rate causes concern in Washington. Jerome Powell, Chair of the Federal Reserve, has revealed that in his semi-annual testimony on Capitol Hill.
And when the world's most powerful central banker is worried about digital assets – they listen and fall. Bitcoin dropped from around $13,00 to closer to $11,500. The slump in cryptocurrencies cannot be blamed on Powell's powerful words, but it certainly contributed to the sell-off.
As Powell's continue echoing, do technical levels provide some solace? The answer is yes, at least for Bitcoin.
This is what the Crypto Confluence Detector shows in its latest update:
Bitcoin enjoys substantial support at $13,420 where we find a dense cluster of lines including the Simple Moving Average 100-one-day, the Fibonacci 38.2% one-month, the SMA 50-4h, the Bollinger Band 15min-Lower, and the Pivot Point one-day S1.
Assuming it stabilizes, BTC/USD will have to overcome resistance at $12,347 to unleash the upside. The area is the convergence of many lines including the SMA 10-4h, the SMA 200-15m, the SMA 50-1h, the BB 1h-Upper, the Fibonacci 23.6% one-month, the BB 4h-Middle, the PP 1w-R1, the Fibonacci 38.2% one-day, and the previous weekly high.
If it breaks this massive hurdle, the granddaddy of cryptocurrencies may run to $13,197 where we see the confluence of the BB 4h-Upper, and the previous daily high.
Below, further support awaits at $10,700 where the Fibonacci 38.2% one-week, and the PP 1d-S2 converge.
See all the cryptocurrency technical levels.
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