The New York Department of Financial Services approved the issuance of two tokens that are pegged to the US dollar and wants to promote innovations in the financial world. So far, cryptocurrency markets have ignored the news as a Bitcoin ETF is eagerly awaited. When markets realize the good NYDFS news, these are the levels to watc.
The Technical Confluence Indicator shows that the $6,350 level is critical to a bullish break higher. It is the dense congestion of resistance levels including the Simple Moving Average 10-one-hour, the one-hour high, the Fibonacci 23.6% one-month, the Bolinger Band 15m-Middle, the SMA 50-15m, the Fibonacci 23.6% one-day, the SMA 5-one-day, the SMA 10-15m, the SMA 5-one-hour, the SMA 100-1h, the Pivot Point one-day Resistance 1, the BB 15m-Uppter, the BB one-our Upper, and quite a few additional levels around it.
A break above the confluence cluster opens the door to higher ground. The Pivot Point one-day Resistance 2 is at $6,413 and is a minor cap. More significant resistgance is at $6,482 which is the convergence of the BB 4h-Upper and PP one-day Resistance 3. Furtther up, Bitcoin may target $6,531 which is the Fibonacci 23.6% one-week.
Looking down, support awaits at $6,266 which is last week's low and the Fibonacci 61.8% one-day. Further support is noteworthy at $6,228 which is the one-day low and the Pivot Point one-day Support 3.
All in all, $6,350 is the make or break point.
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.
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.
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