Consolidation is key for the run-up to $14,000 – Confluence Detector

Fibo Quantum

  • Libra regulation must be set up before launch – G7 Group.
  • Bitcoin consolidates above $10,500 following rejection from $11,000.
  • Ethereum is likely to stay between $230 and $220 in the coming sessions.

Compared to other weekends in the recent past, the cryptocurrency market is quiet. No sudden movements; just consolidation. This, of course, is happening after a gruesome week for Facebook’s proposed crypto, Libra.  

The head of Calibra David Marcus for two consecutive days appeared before the US Senate and Congress in hearings that were meant to iron out the lawmakers’ concerns towards Libra digital currency and Calibra the technology behind it. While Marcus did a great job outlining the mission Facebook Inc. has with the Libra project, the Senate was particularly skeptical.

Most of the members of the Senate feel that Facebook’s history of data privacy violations, possible involvement in US elections and other regulatory violations could be repeated with Libra. The impact Libra could have on global finance is immensely based on the number of people who could potentially adapt Libra as a currency.

The recent G7 Group meeting also discussed Libra and cryptocurrencies. The seven nations are in agreement that Libra will, not be allowed to go ahead until proper regulations are put in place. In addition to that, finance ministers want concerns regarding user privacy, data protection, and money laundering iron out by Facebook.

Bitcoin confluence levels

Bitcoin is relatively bullish this weekend session. Besides managing to stay above $10,500, the bulls are fighting to correct the 1.3% declines on the day. There was an attempt to correct above $11,000 but a high was formed at $11,134 giving way lower corrections.

At press time, Bitcoin is holding ground above $10,500 while facing resistance at $10,608 according to the confluence detector. There are several technical indicators currently converging at this level including the 61.8% Fib retracement level 1-W, Previous High 15-mins, SMA 200 15-mins, SMA 50 1-h, and SMA 5 15-mins. Further movements north, BTC/USD will encounter strong resistance at $10,708 highlighted by the converging previous high 4-h, previous high 1-h, SMA 50 15-mins and the SMA 5 4-h. In absence of resistance above this level, Bitcoin could smoothly sail above $11,000.

On the downside, the significant support is placed at $10,388 aided by the previous low 1-Day and pivot point 1-Day S1. Other key levels traders need to look out for include $10,0059, $9,840, $9,730 and $9,291.

Ethereum confluence levels

Ethereum opened the day’s trading at $228, although it is trading 1% lower on Sunday. The upside is limited at $228 according to the confluence detector tool. The indicators converging here are the SMA 100 15-mins, SMA 5 4-h, Bollinger Band 15-mins upper, and the SMA 200 1-h. Ethereum is likely to consolidate between $220 and $230 in the coming sessions ahead of the new trading week. However, a breakout past $230 will face resistance at $235: SMA 100 1-D, SMA 10 1-D, previous high 1-D and Bollinger Band 1-h upper. On the flip side, support is expected at $221, $214 and $205.

Ripple confluence levels

Among the three top cryptocurrencies, Ripple faces the toughest resistance to the upside. Trading at $0.3282 at press time, the first resistance is seen at $0.3295 highlighted by SMA 5 15-mins, previous high 15-mins and SMA 5 1-h. Another hurdle will cap corrections at 0.3329 with several technical levels ranging from the Bollinger Band 15-mins upper, SMA 5 4-h, previous 100 15-mins and 38.2% 1-D. Further movement towards $0.4 must overcome the hurdles at $0.3431, $0.3500 and $0.3670.

Although there are many hurdles in Ripple’s recovery quest, support areas are also present in almost equal measure. The first highlighted by the confluence detector tool at $0.3227: Bollinger Band 4-h middle. The second support is holding ground at $0.3159, $0.3159, $0.3091, and $0.3056. Dips below $0.3000 will seek for support at $0.2954, $0.2920 and $0.2886.