Bitcoin’s price is stuck around $ 46,000, despite strong momentum. The reason for the resistance lies in the fact that the market leader cryptocurrency by market cap is still at the clouds.
It could mean that the cryptocurrency market will see more sunshine once those clouds have parted.
Bitcoin price stuck in clouds, puts the rally ice
In 2021, the bitcoin price hovered around 50%. Although the most recent recovery from lows has gained momentum it has been halted at the current level.
According to Ichimoku, the place where the most cryptocurrency is stuck is the confluence for cloud resistance over several high-time periods. Ichimoku Kinko Hyo roughly translates to “balanceboard at a glance” or an “instant balance board review” (Japanese).
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It was created in Japan by a journalist Goichi HosodaThere are many uses for it. It can be used to indicate when an asset should be bought or sold, or where support and/or resistance might lie.
BTCUSD is stuck at the clouds for many timeframes. Source:| Source: TradingView.com - BTCUSD
The Chikou Interval (or Lag Interval) is plotted back. Only one way support and resistance can be found. Other spans such as Tenkan-sen or Kijun-sen can also be used as such. As we can see, kumo (or cloud) can also act as resistance in high-Bitcoin time frames.
Ichimoku signals bullish tendency for best cryptocurrency market cap
The Ichimoku cloud’s top spot is reached by Bitcoin between 2 and 5 days. A decisive close to it, along with a new test, should bring the cryptocurrency back up to all-time records. The cloud could be affected by this release.
This level corresponds to Tenkansen resistance over weekly periods. The Tenkan-sen, also known by the baseline, is a sideways movement on the weekly calendar that suggests that Bitcoin is consolidating. A downtrend would correspond with a downward movement of the baseline.
Source :| Source: TradingView.com - BTCUSD
To the right, however, we have The monthly Bitcoin chartwhich is the most bullish. At the moment, there is very little resistance above Bitcoin’s current price.
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The price action is above Tenkan Sen and Kijun Sen, the cloud. There is only a slight spike to face around $ 60,000/BTC.
If Bitcoin can break through this level, then there is no resistance. Price discovery should resume via crypto.
– Tony “The Bull” Spilotro (@tonyspilotroBTC) August 13, 2021
Featured image by iStockPhoto, Charts at TradingView.com