12.6 C
Amsterdam
2 October 2022
PumpMoonshot
Image default
Bitcoin

Bitcoin Price Prediction: BTC/USD needs to break $9,724 for a short-term breakout – Confluence Detector

  • Bitcoin is trading below $9,700 again but still above the daily 12-EMA
  • Bulls are facing a tough resistance level nearby.

BTC/USD lost the 12-EMA and the 26-EMA on the hourly chart and it is now trading below $9,700 again. Unfortunately, bulls also lost both EMAs on the 4-hour chart but the candlestick hasn’t closed yet. We already know that $10,000 is a crucial resistance area but where are the short-term resistance level?

Thanks to the Confluence Detector, we can see Bitcoin will encounter a lot of resistance points around $9,724 where the SMA 5, 1-hour, Fibonacci 38.2% 1-week, Middle Bollinger Band, 15-minute and the Fibonacci 23.6%, daily are all converging. This resistance level is close to another one at $9,757 where the previous 4-hour high and the upper Bollinger Band on the 15-minute chart are standing. 

Support can be found at $9,640 where the daily Fibonacci 38.2% is set and at $9,623, the monthly Fibonacci 23.6%.

BTCUSD

Confluence Detector

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 adjacent 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.

News Source

Related posts

MicroStrategy CEO Introduced Bitcoin to Over 6900 Enterprises on His Latest Event

PumpMoonshot

January Becomes Worst Month for Bitcoin Since 2018

PumpMoonshot

Internet Searches for ‘Bitcoin’ Explode amid Inflation Fears

PumpMoonshot