The price of Bitcoin shot higher on the news that Blackrock, the investment tycoon, has set a working group to see if cryptos have a potential. BTC/USD broke above key resistance levels that now turn into support.
The Technical Confluence Indicator shows that BTC/USD is well supported at $6,549 which is the convergence of the Fibonacci 61.8% one-week, the Simple Moving Average 5-1h, the Fibonacci 38.2% one-month, and the Bolinger Band 15m-Middle.
Even stronger support awaits at the $6,360-to $6,412 area. Here we see a congestion of the Bolinger Band 1d-Middle, the one-day high, the SMA 100-15m, the BB 1h-Middle, the SMA 50-4h, the SMA 200-1h, the BB 15m-Lower, the SMA 200-4h, the SMA 5-4h, the Pivot Point one-day Resistance 1, the Fibonacci 23.6% one-day, the Fibonacci 38.2% one-week, and the SMA 10-4h.
The fact that BTC/USD broke above such tough resistance indicates it has momentum. So where next?
$6,867 is the confluence of the one-month high and the Bolinger Band one-day Upper. $7,028 is the Fibonacci 61.8% one-month, and only very few meaningful lines are waiting above.
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.