Cryptocurrencies bounced back with BTC/USD climbing back above $6,000 over the weekend and enjoyed a second bump higher over the weekend. Where next?
The Technical Confluence Indicator shows that Bitcoin faces an initial, not too strong hurdle at around $6,686 where the Pivot Point one-week Resistance 2, the Bolinger Band 15m-Upper, and the one-hour high converge.
The more significant target is the $7,025 which is the confluence of the Fibonacci 61.8% one-month and the Pivot Point one-week Resistance 3. Both are very potent lines.
On the downside, the cryptocurrency has support around $6,545, which is the meeting point of the Fibonacci 161.8% one-day and the Fibonacci 38.2% one-month.
Further down, very strong support awaits at the $6,357 level which is the congestion of the Bollinger Band
All in all, after the impressive recovery, the path of least resistance is to the upside.
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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