Bitcoin Needs to Overcome the Cloud before Taking on the Moon
Updated
The Ichimoku cloud is a tool to help identify hidden levels of support and resistance.
During strong trends, the cloud will hold up prices in an uptrend and hold down prices in a correction.
For bitcoin, notice how the cloud held prices up right before the price collapsed.
Now, the cloud is acting like overhead resistance. Breaking above the cloud high of 45k is the first order of business in an effort to resume a bull run.
The near-term price action looks promising as RSI divergence is visible on the latest low in price. This suggests the near-term downtrend has lost its momentum and a turn north is higher probability.
During strong trends, the cloud will hold up prices in an uptrend and hold down prices in a correction.
For bitcoin, notice how the cloud held prices up right before the price collapsed.
Now, the cloud is acting like overhead resistance. Breaking above the cloud high of 45k is the first order of business in an effort to resume a bull run.
The near-term price action looks promising as RSI divergence is visible on the latest low in price. This suggests the near-term downtrend has lost its momentum and a turn north is higher probability.
Note
There are some constructive Elliott Wave patterns brewing. Bitcoin will need to hold above $32,000 otherwise this likely becomes a false start to the upside.
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seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
EW Express - bit.ly/elliottwaveexpress
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