Bitcoin and other cryptocurrencies are tumbling down once again, and many ask: where will it bottom out? While it is hard to catch a falling knife, some technical levels stand out on BTC/USD.
The Technical Confluence Indicator shows that the $6,403 level is critical as it is a dense cluster of levels including the Pivot Point one-month Support 1, the Pivot Point one-day S1, the Simple Moving Average 10-15m, the 15m-High, and the Bolinger Band one-hour Lower.
Should Bitcoin break higher, $6,647 is the convergence of the Fibonacci 38.2% one-day, the Simple Moving Average 10-4h, and the Bolinger Band one-hour-Upper.
The target high above is $7,065 which is the confluence of the one-month low, the Pivot Point one-day Resistance 2, and the Simple moving Average 5-one-day.
On the other side, a notable level is $6,263 which is the convergence of the Pivot Point one-day S2 and the Bolinger Band 15m-Lower. Even lower, $5,949 is the Pivot Point one-day Support 3.
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.