The 10-year anniversary of the collapse of Lehman Brothers nears. Bitcoin was born on the darkest days of the crisis. While cryptocurrencies are suffering, the granddaddy of the blockchain looks quite stable and has a clear upside target.
The Technical Confluence Indicator shows that the $6,533 is the convergence of the Pivot Point one-day Resistance 3 and the Fibonacci 23.6% one-week. This is the first hurdle.
The next confluence is stronger. At $6,603 we see the meeting point of the Simple Moving Average 200-4h and the Fibonacci 38.2% one-month.
Looking down, $6,383 is the confluence level of the SMA 10-one-hour, the Bolinger Band 4h-Upper, the Pivot Point one-day Resistance 1, and the 1h-low.
Stronger support is at $6,333 where we see the Bolinger Band 1h-Middle, the Fibonacci 23.6% one-month, and the SMA 5-4h.
Click to see the Full Confluence Indicator
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.
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto , and our FXStreet Crypto Trading Telegram channel
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