Bitcoin Price Breaks Above The Monthly Ichimoku Cloud
Bitcoin price is currently at $37,500, a significant drop from its previous all-time high of $68,000. However, there are indications that the cryptocurrency could be on its way back to all-time highs sooner than expected.
Technical analysts use various tools to analyze market conditions and make trading decisions. One such tool is the Ichimoku, created by Japanese journalist Goichu Hosoda. The Ichimoku provides a comprehensive view of market conditions, including future support and resistance levels, as well as trend-following indicators.
The chart below shows that there is very little 1M BTCUSD resistance left, indicating that Bitcoin price is pushing above all major resistance levels. Each time Bitcoin price passed through these levels and the Ichimoku cloud, an extended bull market formed.
It is worth noting that the Tenkan-sen and Kijun-sen are still crossed bearish, but this has also occurred prior to previous bull runs. Additionally, the lagging span, which shows former support and resistance levels, indicates that Bitcoin may face some less significant resistance levels at around $43,000 and $60,000.
However, beyond $60,000, the Ichimoku shows clear skies for Bitcoin, with no significant resistance levels. This suggests that once the Ichimoku cloud is left behind, Bitcoin could be in for a clear path to higher prices.
This analysis originally appeared in Issue #27 of CoinChartist VIP. Click here to read the full issue.
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