Bitcoin and other cryptocurrencies were stuck from around two weeks of very little movement. The dearth in action ended and with a victory for the bears. The BTC/USD dropped to the downside. What’s next? Bulls have a clear level of resistance to overcome.
The Technical Confluence Indicator shows that the digital currency is trading around the pivotal $6,275 level which is the convergence of the Bollinger Band one-hour Lower, the Simple Moving Average 10-15 minutes, and the previous 4-hour low among others.
Emerging from this area will open the door towards the round $6,300Â level where we see the confluence of the Simple Moving Average 5-one-hour, the Pivot Point one-week Support 2, and the Bollinger Band 15m-Middle.
The most significant resistance line is around $6,360 which is the meeting point of last week’s low, the Pivot Point one-month S1, the SMA 10-1h, and the Pivot Point one-week S3.
Looking down, further support awaits at $6,248Â where the Pivot Point one-month Support 3 awaits the BTC/USD.
​​​​​​Technical 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.
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