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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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Are you ready to learn Elliott Wave? Take our Free Elliott Wave Readiness Assessment: bit.ly/EWreadinessquiz2
seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.