Bitcoin Stuck In The Clouds, But Brighter Days Could Be Ahead

Bitcoin price is stuck at around $46,000 unable to push higher despite some strong momentum and buying at its back. The reason for the resistance, is because the leading cryptocurrency by market cap has its head caught in the clouds.
Once these clouds part, however, it could lead to a lot sunnier days across the cryptocurrency market once again.
Bitcoin Price Stuck In The Clouds, Puts Rally On Ice
Bitcoin price has whipsawed back and forth by more than 50% during 2021. The most recent recovery from lows has momentum behind it, but has taken a pause at the current level.
The area where the top cryptocurrency is stuck, is in a confluence of cloud resistance across several high timeframes, according to the Ichimoku indicator. Ichimoku Kinko Hyo loosely translates to “one glance equilibrium chart” or “instant look at the balance chart” in Japanese.
Related Reading | What Bear Market? Bulls Now “In Control” Over Every Bitcoin Timeframe
It was created by Japanese journalist Goichi Hosoda and has a variety of functions and uses. It can signal when to buy or sell an asset, when an asset is bearish or bullish, or in this case, where support and resistance might be.
BTCUSD is stuck in the clouds on many timeframes | Source: BTCUSD on TradingView.com
The Chikou-span or the lagging span, is plotted backward and only one way support or resistance can be found. Other spans, such as the Tenkan-sen and Kijun-sen, also act as such. Finally, the kumo or cloud can also act as resistance as we’re seeing across several high Bitcoin timeframes.
Ichimoku Signals Stack Bullish For Top Cryptocurrency By Market Cap
On the 2-day through the 5-day, Bitcoin price is touching the top of the Ichimoku cloud. A decisive close outside it, along with a retest that holds should send the cryptocurrency back to all-time highs. Rejection here could cause a push back to the bottom of the cloud.
The level also matches up with the Tenkan-sen resistance on weekly timeframes. The Tenkan-sen, also called the base line, is moving sideways on the weekly timeframe suggesting Bitcoin is consolidating. A downtrend would show with a corresponding move down in the base line.

The top cryptocurrency is also contending with Tenkan-sen resistance | Source: BTCUSD on TradingView.com
On the right hand side, however, we’ve got the monthly Bitcoin chart which is the most bullish of all. At just a glance, there’s very little resistance above Bitcoin price currently.
Related Reading | Bearish Bitcoin Signal Could Send Bulls To Early “Grave”
Price action is above the Tenkan-Sen and Kijun-Sen, the cloud, and there’s only a sharp spike to contend with above at around $60,000 per BTC.
If Bitcoin can take out that level, there’s no resistance left and price discovery should resume across crypto.

#Bitcoin is touching Ichimoku resistance on most time-frames except monthly. Very little resistance there. New ATHs ahead. pic.twitter.com/hytiJZcTxB
— Tony “The Bull” Spilotro (@tonyspilotroBTC) August 13, 2021

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com

Ora Goodwin
Ora Goodwin
I am a well-known and respected author in the cryptocurrency field. I have been writing about Bitcoin and other digital currencies for over 5 years, and my work has appeared in some of the most respected publications in the space. I am also a regular speaker at industry events, and my insights into the crypto market are highly sought after by both media and investors. In addition to my writing and speaking engagements, I am also an active advisor to several blockchain startups, and I sit on the board of directors for the Blockchain Education Network.

Similar Articles

Most Popular

Coupon Finance Launches Innovative Peer-to-Pool Lending Protocol to Enhance Capital Efficiency in Lending Markets

Location, March 26, 2024 — In an effort to address inefficiencies within the decentralized finance (DeFi) lending space, Coupon Finance has unveiled its peer-to-pool...

HODLer Token’s Presale Kicks Off on March 28, 2024, Offering Unique Investment Opportunities

Location, March 24, 2024 — In a significant development for cryptocurrency enthusiasts and investors, HODLer Token ($HODLR) has officially announced the launch of its...

Introducing Burve Protocol: A Groundbreaking Leap in Decentralized Finance with AMM 3.0

– Today marks the groundbreaking launch of Burve Protocol, a revolutionary Automatic Market Maker (AMM) that stands at the forefront of decentralized finance...

Feathering the Nest: Hectic Turkey’s Bold Venture into DeFi Innovation

  the brainchild behind Hectic Turkey, asserts. "We aimed to disrupt the space with something that's both fun and fundamentally valuable."   Laying the Foundation   The cornerstone of...

Feathering the Nest: Hectic Turkey’s Bold Venture into DeFi Innovation

  the brainchild behind Hectic Turkey, asserts. "We aimed to disrupt the space with something that's both fun and fundamentally valuable."   Laying the Foundation   The cornerstone of...

BLOCX. Leads the Way With All-in-One Computer Manager and Announces V1.2 Release

London, UK – February 20, 2024 — BLOCX., a comprehensive digital computing platform, today announced a series of significant updates and an ambitious roadmap for...

With 950,000 New Users in 30 Days, Web3 Social Infrastructure UXLINK Surpasses 3 Million Certified Users

Web3 Social Infrastructure UXLINK innovatively develops rapidly through the "Real World Social'' and "Group" modes, and in only 10 months since the project was...

Revolutionizing Venture Capital: VNTR DAO’s Decentralized Approach

VNTR DAO announces its official launch on the Arbitrum One network, marking a significant milestone in the evolution of decentralized Venture Capital. This innovative...