Bitcoin and fellow cryptocurrencies have lost some ground as the summer draws to a close. The cooperation between Yahoo Finance and Coinbase has not inspired a fresh move. ETF decisions loom in September. What prices should we be looking at?
The Technical Confluence Indicator shows that a dense cluster of resistance lines awaits the BTC/USD if it approaches the round level of $7,000. We see stiff resistance from $6,970 to the found number. This includes the heavy-weight lines of the Simple Moving Average 50-one-day, the Pivot Point one-week Resistance 1, the Bolinger Band one-hour Middle, the SMA 5-4h, the Fibonacci 23.6% one-day, the 4h high, and the Simple Moving Average 100-15m.
Overcoming this zone opens the door to a run on $7,120 which is the convergence of the Bollinger Band one-hour-Upper, the one-day high, and the Pivot Point one-day Resistance 1.
Looking down, support awaits at $6,856 which is the meeting point of the SMA 5-15m, the 4h-low, the PP one-day Support 2, and the SMA 10-15m.
Further support is at the $6,728 area which is the confluence of the Fibonacci 23.6% one-week, the SMA 50-4h, and the SMA 200-1h.
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.
Learn more about Technical Confluence
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