Bitcoin Top Price Prediction: Path of least resistance is up and bulls can cautiously look up – Confluence Detector
After a terrible week, cryptocurrencies have bounced off the bottom. Specifically for Bitcoin, it managed to set a higher low, a sign that gives hope for the bulls. And now we also see that support levels are stronger than resistance lines, indicating that the next leg is up.
The Technical Confluence Indicator shows that the most robust confluence level on the chart is below the current price. At $6,371 we see the convergence of the Pivot Point one-month Support 1 and the Fibonacci 61.8% one-day. These are both potent lines.
Looking up, we see some resistance around $6,471 which is the convergence of the Simple Moving Average 5-4h, the Fibonacci 38.2% one-day, the 4h high, and the SMA 100-15m.
Should the BTC/USD break above this level, the next target is much higher, at $6,652 where we find the Pivot Point one-week Support 2, the SMA 100-one-hour, and the one-day high.
Below the support line mentioned earlier, we see $6,331 as support as it is the meeting point of the Bolinger Band one-day Lower, and the BB 1h-Lower.
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.
