Bitcoin is stabilizing and looking for a new direction. Where will it be? With no less than 16 levels of support converging below the price, the path of least resistance looks to be the upside.
The Technical Confluence Indicator shows that the $7,610 level is a dense congestion of the following 16 lines: the Bolinger Band 1h-Middle, the Bolinger Band 15m-Lower, the 1h-Low, the Simple Moving Average (SMA) 5-1d, the Fibonacci 23.6% one-day, the SMA 100-1h, the SMA 5-4h, the SMA 10-15m, the SMA 5-15m, the one-week high, the 15m-low, the Bolinger Band 1h-Middle, the SMA 50-15m, the BB 15m-Middle, the 1h-High, and the SMA 1h.
Looking up, $7,761 is the confluence of the Fibonacci 23.6% one-month, the Pivot Point one-week Resistance 1, the Pivot Point one-day Resistance 1, and the Bolinger Band 1h-Upper. Further above, the next target is $8,164, which is the Fibonacci 38.2% one-month.
On the downside, there are many lines of support defending the massive line mentioned earlier. The $7,403 level is the meeting point of the Bolinger Band 1h-Lower and the Fibonacci 38.2% one-week. Even lower, $7,034 is the one-month low and the one-week low.
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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