Clear Skies: Why Bitcoin Overhead Resistance Is Weak

Clear Skies: Why Bitcoin Overhead Resistance Is Weak

Time Stamp: November 20, 2023 6:00 PM
Source Node: 2391423

Bitcoin price is only at $37,500 — a far cry from former all-time highs around $68,000.

However, one visual technical analysis tool could show that overhead resistance is weak, and that the top cryptocurrency could rip right through what’s left. Could BTCUSD be back at all-time highs faster than most are ready for?

Bitcoin Price Breaks Above The Monthly Ichimoku Cloud

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

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

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

With all that out of the way, all it takes is “one glance” at the chart below and we can see there is very little 1M BTCUSD resistance left.

bitcoin btcusd

Bitcoin price is pushing above all major resistance | BTCUSD on TradingView.com

Clear Skies Above Major Resistance, But Minor Pullbacks A Plenty

Also at just a glance, it is possible to see how each time Bitcoin price passed through these spans and the Ichimoku cloud, an extended bull market formed.

It is important to note, however, that the Tenkan-sen (blue) and Kijun-sen (maroon) are still crossed bearish. But this also happened prior to each bull run.

Additionally, the lagging span has been omit from this chart. Called the Chikou span in Japanese, the lagging span shows where former support and resistance used to be, which means Bitcoin does have some less significant resistance levels to contend with at around $43,000 and again around $60,000.

Beyond $60,000, the Ichimoku shows nothing but air. Could this really mean clear skies for Bitcoin once the Ichimoku cloud is officially left behind?

This chart appeared initially in Issue #27 of CoinChartist VIP. Click here to read the rest of the issue.

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