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If Bitcoin wants to recover, there is one level it needs to capture quickly

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:

Bitcoin confluence crash levels

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.

Learn more about Technical Confluence

More:  Latest cryptocurrency news

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.