Bitcoin: Upside targets After The Coinbase SEC News Boost – Confluence Detector

This article originally appeared on FXStreet.

Bitcoin is moving up after the news that Coinbase is eyeing an SEC license, strengthening the notion that the cryptocurrency has bottomed out. What are the next targets?

The Technical Confluence Indicator shows that the initial resistance awaits at the $7,750 level which is the convergence of the 1h-high, the 4h-high, the Fibonacci 23.6 percent one-month, the Pivot Point one-week Resistance 1, and the Pivot Point one-day Resistance 1.

Next up, the $7,965 number defends the round $8,000 level. It is the meeting point of the Pivot Point one-day Resistance 3 and the Pivot Point one-week Resistance 2. 

Yet the most prominent target is at $8,181 which is the confluence of the Fibonacci 38.2 percent one-month, a powerful line, and the Simple Moving Average 200-4h. Evsen higher, $8,301, $8,396, and $8,458.

On the downside, strong support awaits at $7,627 which is the congestion of the Simple Moving Average 100-1h, the one-week high, the Fibonacci 38.2 percent one-day, and the SMA 5-1d. Further down, the $7,412 price level is the convergence of the Bolinger Band 1h-Lower, the Fibonacci 38.2 percent one-week, and the Pivot Point one-day Support 2.

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.

Learn more about Technical Confluence