Ignore current prices, technical picture has materially improved

  • Cryptocurrencies are now better supported after a vulnerable Thursday.
  • Expiration of futures and long US weekend may trigger high volatility.
  • Here are the next levels to watch according to the Confluence Detector.

Digital coins were in a perilous state on Thursday – with few support lines to hold them. However, Bitcoin, Ethereum, and Ripple managed to weather the storm by remaining in place, and have materially improved their positions.

The low volatility environment is set to change for two reasons. First, Bitcoin options expiring in the Chicago Mercantile Exchange (CME) – an event that has previously resulted in spikes in price action.

The second reason is the long Labor Day Weekend in the US. The absence of traders may result in lower liquidity – allowing for sharper moves in markets.

Let us examine how currencies are positioned.

This is what the Crypto Confluence Detector shows in its latest update:

BTC/USD finding support

Bitcoin has found support at $9,520, which is a dense cluster of lines including the Fibonacci 38.2% one-day, the Simple Moving Average 100-1h, the SMA 100-15m, the SMA 50-15m, the Bollinger Band 1h-Middle, the SMA 5-4h, the BB 15min-Middle, and more.

It has several additional support lines below, with the most notable one being $9,122, which is the convergence of the previous monthly low and the Pivot Point one-day Support 2.

BTC/USD may now begin looking to the upside. The granddaddy of cryptocurrencies faces resistance at $10,117, where we see the confluence of the SMA 50-4h, the SMA 100-1d, the Fibonacci 23.6% one-month, and the SMA 200-1h.

Next up, Bitcoin has another cap at $10,515, which is the meeting point of the BB 4h-Upper, the Fibonacci 38.2% one-week, and the SMA 50-1d.

ETH/USD struggles above support

Ethereum has also improved its situation and enjoys massive support. Can it move higher? Vitalik Buterin’s brainchild sits above $169.50, which is the convergence of the PP…

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