Bitcoin price looks bullish after breaking resistance, $7400 is the high target

Bitcoin overcame the barrier and followed Bitcoin Cash and other cryptocurrencies to new highs. The successful IPO of Bitmain in Hong Kong is cited as the primary reason. Can the momentum continue? The top cryptocurrency now enjoys the robust support and very few resistance lines on the way up.

The Technical Confluence Indicator shows that the BTC/USD has significant support at $6,649 where we see the Bollinger Band one-hour Middle, the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-week, and the Simple Moving Average 200-4h.

The most substantial support line awaits at $6,578 where we see a dense cluster of support levels: the Fibonacci 61.8% one-day, the SMA 10-one day, the SMA 50-4h, the SMA 200-1h, the SMA 50-one day, and the SMA 5-one-day.

Looking up, minor resistance awaits at $6,769 which is where the BB 15m-Upper, the 1h-high, last week’s high, and the BB one-day Upper converge.

Further above, we see resistance lines dotted along the path but the only considerable level is $7,400 which was last month’s high. It is backed up by the SMA 200-one-day.

​​​​​​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.

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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

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