July 24, 2024
Clear Skies: Why Bitcoin Overhead Resistance Is Weak

Bitcoin is worth just $37,500 – far below the former all-time high of $68,000.

However, a visual technical analysis tool may show that overhead resistance is weak, and the top cryptocurrency may even surpass what is left. Could BTCUSD get back to all-time highs faster than most people expect?

Bitcoin price moves above the monthly Ichimoku cloud

Technical analysts rely on a variety of tools to help them visually observe and provide signals to take positions manually or automatically based on the results.

One such tool, created by Japanese journalist Goichu Hosoda, is called Ichimoku. Hosoda was nicknamed “Ichimoku Sanjin”, which translates as “What the man in the mountain sees”. The idea behind Ichimoku is that it provides an “at a glance” view of all market conditions.

For example, a cloud plots where support and resistance may lie in the future. Meanwhile, the Tenkan-sen and Kijun-sen act as trend-following tools that draw bearish and bullish crosses based on price action. These spans can also act as support and resistance.

With all this said, it only takes “one look” at the chart below and we can see that there is very little 1M BTCUSD resistance left.

Bitcoin price is moving above all major resistances. BTCUSD on Tradingview.com

Clear Sky is above major resistance, but there are plenty of minor shortcomings

Furthermore, with just a glance, it is possible to see how each time the Bitcoin price passes through these periods and the Ichimoku cloud, an extended bull market is formed.

However, it is important to note that the Tenkan-sen (blue) and Kijun-sen (maroon) are still bearish. But this also happened before every boom.

Additionally, lagging span has been removed from this chart. Called Chikou Span in Japanese, lagging spans show where prior support and resistance used to be, meaning Bitcoin has some less significant resistance levels to contend with around $43,000 and then around $60,000.

Above $60,000, Ichimoku shows nothing but wind. Could it really be clear skies for Bitcoin after the Ichimoku cloud is officially left behind?

This chart initially appeared in issue #27 of Coinchartist VIP. Click here to read the remaining issues.

source: www.newsbtc.com

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