Bitcoin Top Price Prediction: Can't keep it too low with this kind of support – Confluence Detector
Cryptocurrencies suffered another blow with Bitcoin dipping under $6,000. However, it managed to bounce back quickly and is now well supported.
The Technical Confluence Indicator shows that the BTC/USD has initial support at $6,090 which is the convergence of the 4h-high and the Pivot Point one-day.
Bitcoin enjoys much stronger support at $6,023 where we see the confluence of last month's low, last week's low, the Simple Moving Average 10-1h, and the SMA 15m.
Looking up, $6,242 is an initial target as the meeting point of the SMA 10-4h and the Fibonacci 23.6% one-day.
The next hurdle is $6,301 which is the confluence of the Fibonacci 23.6% one-week, the Simple Moving Average 5-one-day, and the Fibonacci 38.2% one-day.
The path of least resistance is up.
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.
