Bitcoin Top Price Prediction: Overcoming $7,567 is key to a meaningful recovery – Confluence Detector
Cryptocurrencies remain under pressure after the second wave of selling. Bitcoin has weathered the storm better than others but now faces a significant technical test for its recovery.
The Technical Confluence Indicator shows that the strongest convergence of technical levels is at $7,567. This is where the potent Fibonacci 38.2% one-day, the Fibonacci 38.2% one-month, and the one-hour high meet.
Breaking above that level will allow the pair to run higher towards the $7,778 area which is the confluence of the Simple Moving Average 100-4h, the one-day high, and the Fibonacci 61.8% one-week.
Looking down, $7,450 is a significant support level that consists of the one-day low and the Pivot Point one-day Support 1, both substantial levels.
Lower, $7,333 is last week's low and the Bolinger Band 4h-Lower.
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.
