The Bitcoin price is just $37,500 – a far cry from the previous all-time highs around $68,000.
However, one visual technical analysis tool could show that resistance from above is weak, and the top cryptocurrency could tear right through what’s left. Could BTCUSD be back at an all-time high faster than most people are ready for?
Bitcoin price breaks above the monthly Ichimoku cloud
Technical analysts rely on a variety of signaling tools to visually inspect and 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 translated means ‘what the man sees in the mountain’. The idea behind the Ichimoku is that it provides an overview of all market conditions at a glance.
For example, the cloud maps where future support and resistance may lie. Meanwhile, the Tenkan-sen and Kijun-sen act as trend-following instruments that cross bearish and bullish depending on the price action. These spans can also serve as support and resistance.
Now that all of that is out of the way, all it takes is one look at the chart below and we can see that there is very little 1 million BTCUSD resistance left.
Bitcoin price is pushing above all major resistance | BTCUSD on TradingView.com
Clear skies above major resistance, but minor setbacks abound
Also, it is possible to see at a glance how each time the Bitcoin price passed these periods and the Ichimoku cloud emerged, an extended bull market was created.
However, it is important to note that the Tenkan-sen (blue) and Kijun-sen (maroon) are still bearishly crossed. But this also happened before every bull run.
In addition, the lagging span has been omitted from this graph. Called the Chikou Span in Japanese, the trailing span shows where support and resistance used to be, meaning Bitcoin has some less significant resistance levels to contend with, around $43,000 and again around $60,000.
Above $60,000, the Ichimoku shows nothing but air. Could this really mean clear skies for Bitcoin once the Ichimoku cloud is officially behind it?
This chart initially appeared in issue 27 of CoinChartist VIP. Click here to read the rest of the issue.