Bitcoin Top Price Prediction: Support is here, and bulls need a quick win over this resistance to recover – Confluence Detector
The calm in cryptos has ended with sharp falls across the board. Bitcoin was always better positioned. The King of Cryptos has strong support and needs to jump above one hurdle to recover.
The Technical Confluence Indicator shows that there is a potent convergence of resistance levels at $7,163, which is the Pivot Point one-day S2 and last month's high.
If the BTC/USD overcomes this level, the next ones are much softer. At $7,230 we see the convergence of the SMA 5-one-day and the one-day low. Next up we see $7,330 as the cluster of the Simple Moving Average 10-15m, and the SMA 10-4h.
Looking down, Bitcoin has strong supper at the dense cluster at $7,129 where we see the Fibonacci 161.8% one-day, the SMA 200-1h, the SMA 50-4h and last week's high all converge.
Next, $7085 is the meeting point of the SMA 10-one-day and the Pivot Point one-day, Support 3. Another backup awaits at $7,051 which is the significant Fibonacci 61.8% one-month.
All in all, the BTC/USD will find it hard to fall and rising above the hurdle of $7,163 should open the door to recovery.
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.
