Bitcoin price is only at $37,500, a far cry from the previous all-time highs of around $68,000.
However, a visual technical analysis tool could show that the overhead resistance is weak and the leading cryptocurrency could break through what remains. Could BTCUSD hit all-time highs again faster than most are prepared?
Bitcoin price surpasses monthly Ichimoku cloud
Technical analysts rely on a variety of tools to help provide signals to visually inspect and take positions manually or automatically based on the results.
One of those tools, created by Japanese journalist Goichu Hosoda, is called Ichimoku. Hosoda was nicknamed “Ichimoku Sanjin”, which loosely translates to “what the man sees on the mountain”. The idea behind Ichimoku is that it provides an “at-a-glance” view of all market conditions.
For example, the cloud maps where future support and resistance may be found. Meanwhile, Tenkan-sen and Kijun-sen act as trend following tools that cross bearish and bullish trends depending on price action. These stretches can also act as support and resistance.
With all that out of the way, all it takes is “one look” at the chart below and we can see that there is very little resistance left at 1 million BTCUSD.
Bitcoin price is breaking through all major resistances | BTCUSD on TradingView.com
Clear skies above major resistance, but plenty of minor pullbacks
Also with just a glance, it is possible to see how every time the price of Bitcoin passed through these sections and the Ichimoku cloud, an extended bull market was formed.
It is important to note, however, that the Tenkan-sen (blue) and the Kijun-sen (maroon) remain bearish crossovers. But this also happened before every bull run.
Related Reading: Failed Bearish Signal Could Send Bitcoin to $85,000 Next Month
Additionally, the lag leg has been omitted from this graph. Called the Chikou leg in Japanese, the lagging leg shows where previous support and resistance used to be, meaning Bitcoin has a few less significant resistance levels to contend with, 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 behind us?
This chart initially appeared in CoinChartist VIP issue #27. Click here to read the rest of the issue.
Tony is the author of the CoinChartist (VIP) newsletter. Sign up free. Follow @TonyTheBullBTC and @coinchartist_io on Twitter. Or join TonyTradesBTC Telegram for daily market insights and technical analysis education. Please note: The content is educational and should not be considered investment advice. Featured image from Shutterstock, charts from TradingView.com
