Bitcoin Top Price Prediction: Bears are in full control, targeting $5,990– Confluence Detector
Bitcoin took a hit and dipped below $6,200. The granddaddy of digital coins carried other cryptocurrencies down with it. The technical picture does not look good.
The Technical Confluence Indicator shows that BTC/USDUSD has only immediate weak support at $6,174 which is the convergence of the Pivot Point one'week Suppor 2, the PP one-week S3, and the Bollinger Band 15m-Lower.
The next support line is only at $6,065 where we see last month's low. The bottom line to watch is $5,990 where we see the Pivot Point one-month Support 1.
Resistance is much more significant. A considerable cluster of resistance lines awaits at $6,232. It includes the BB 4h-Lower, the Fibonacci 23.6% one-month, and the PP one-day Support 1.
It is closely followed by $6,252 which is the confluence Simple Moving Average 10-1h, the Pivot Point one-month Support 1, the SMA 50-15m, and the yesterday's low.
All in all, the path of least resistance is to the downside.
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.
