Bitcoin and other cryptocurrencies are on the rise after Jim Cramer, an influential financial analysis on CNBC and a longtime crypto skeptic said that banks are pressured by digital assets. This bullish twist coming from a crypto bear sent the cryptocurrency above fierce resistance. Where can momentum take it next?
The Technical Confluence Indicator shows that the digital coin faces an initial challenge at $6,755 which is the convergence of the 15m-high, the Fibonacci 161.8% one-day, and the Pivot Point one-day Resistance 3.
The next considerable technical level is the $6,975 which is the potent Fibonacci 61.8% one-week. The area around $7,200 is the meeting point of the all-important Pivot Point one-week and the Bollinger Band one-day Middle.
On the downside, BTC/USD has serious support at $6,495 which is the Simple Moving Average 10-4h, the SMA 50-1h, the SMA 200-15, and the Fibonacci 38.2% one-day.
This is closely followed by the major level Bitcoin broke: $6,456 which is the congestion of the SMA 5-4h, the SMA 50-15m, the SMA 5-1h, the Bolinger Band 1h-Middle, the SMA 10-1h, the 1h-low, the BB 15m-Middle, the Fibonacci 23.6% one-week, and the SMA 5-1d.
All in all, this is a major breakout, and 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.
Read more at: FX Street
