BTC/USD market has potential for growth as no strong lines of resistance observed- Confluence Detector

  • BTC/USD daily confluence detector shows no distinct lines of resistance.
  • BTC/USD has strong support at $3,340.

As earlier reported by FX Street, BTC/USD bulls are trying to stabilize the price after the sudden bearish drop in the crypto market. The market is currently resting on $3,370 support line. Looking at the daily confluence detector, it seems like the market has the potential not just to stabilize but to increase in valuation as well.

BTC/USD daily confluence detector

The first noticeable thing in the confluence detector is the lack of any significant lines of resistance. The BTC/USD resistance levels are at $3,380, $3,395, and $3,425. The confluence in these levels are as follows:

  • $3,380: 15 min Bollinger band upper curve, hourly Bollinger band upper curve, daily 38.2% Fibonacci retracement level.
  • $3,395: 200-day simple moving average (SMA 200) curve, SMA 50 curve, weekly 23.6% Fibonacci retracement level.
  • $3,425: SMA 5 and SMA 10.

The support levels in the BTC/USD market are $3,370 and $3,345. The confluences in those levels are:

  • $3,370: 15 min Bollinger band lower curve, daily 23.6% Fibonacci retracement level, SMA 50, SMA 10, hourly Bollinger band middle curve, SMA 5.
  • $3,345: Daily previous low, monthly previous low, and weekly previous low.
     

BEST BROKERS TO TRADE CRYPTO

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.