Where will the free-fall of Bitcoin stop? After a downfall on November 14th, BTC/USD had a bad day on Monday that became worse today. At least it’s doing better than Bitcoin Cash, which crashed 40% in 24 hours. What are the levels to watch?
The Technical Confluence Indicator shows that initial resistance awaits at $4,448 which is the convergence of the Pivot Point one-day Support 1 and the Bollinger Band 15-Middle.
However, a crucial level is $4,539. Here we see the confluence of the all-important Pivot Point one-week Support 2, the previous 4h-high, and the Simple Moving Average 10-1h. As the chart shows, this is a critically strong level. Recapturing it would provide some relief and prevent imminent further falls.
It would also open the door to higher levels: the are of $4,700 is the meeting point of the Bollinger Band 4h-Lower and yesterday’s high. Next up, we find the SMA 100-15m, the SMA 5-4h at $4,858.
If this does not happen and BTC/USD resumes its falls, $4,129 is the initial target: it is the Pivot Point one-day Support 2.
However, that line is not that robust and a much more significant support line is only at $3,856 which is the top-tier Pivot Point one-month Support 3.
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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