Bitcoin (BTC): Price action and Forbes hint at incoming bull market
January 13, 2020
Bitcoin (BTC) Weekly Ichimoku Kinko Hyo Chart
The weekly chart for Bitcoin (BTC) is a textbook example of the behavior and strength of the Senkou Span B line (bottom of the Cloud). Senkou Span B is the exact level where last week’s weekly candlestick was halted against. The rejection against Senkou Span B was a sort of double-resistance because the Chikou Span was also trading against Senkou Span B. However, as the new weekly candlestick has formed, the Chikou Span has now moved above the Cloud. When the Chikou Span moves above the Cloud on the weekly chart, it is often one of the final signals that confirm a new uptrend is about to begin. This is especially true because the frequency of the Chikou Span moving above (or below) the Cloud is a rare event. Do you know the last time the Chikou Span move above the weekly Cloud? The week of April 16th, 2017. Ideally, we would see the Chikou Span move above the candlesticks from twenty-six periods ago; this would be the final condition to confirm a new and prolonged bullish trend. The overall conditions on Bitcoin’s weekly Ichimoku chart remain bearish, the fact that Bitcoin has moved above the weekly Tenkan-Sen (blue average) is a bullish sign. According to the weekly chart, I would expect Bitcoin to range between a resistance zone of $8500 (Senkou Span B) and a support zone of $7500 (Senkou Span B below the Chikou Span).
Bitcoin (BTC) Daily Ichimoku Kinko Hyo Chart
Bitcoin’s daily chart hints at some potential explosive moves higher. The conditions on the daily chart are very similar to what we see on the weekly chart. The Cloud is acting as a source of double-resistance with price being halted against the top of the Cloud (Senkou Span B) and the Chikou Span getting stopped against the bottom of the Cloud (Senkou Span A). But we are very near seeing the daily chart confirm an ideal bullish Ichimoku breakout signal. The Ideal Bullish Ichimoku Breakout signal requites the following conditions to be met:
Ideal Ichimoku Breakout Signal Conditions
- Tenkan-Sen above Kijun-Sen.
- Price above both Tenkan-Sen and Kijun-Sen.
- Future Senkou Span A greater than Future Senkou Span B.
- Price above the Cloud.
- Chikou Span above the Cloud and candlesticks.
- Optional: Chikou Span in open space.
From a bullish perspective, we have a very positive looking chart because four of the six conditions are met. Unfortunately, the two final conditions to confirm an Ideal Bullish Ichimoku Breakout signal are the most difficult to complete: Both price and the Chikou Span above the Cloud. However, there may be signs that after today we only have to worry about the Chikou Span moving above the Cloud. If Bitcoin can remain above the $8000 value area, then the next daily candlestick that forms will put Bitcoin above the Cloud. If that occurs, then we need to wait for the Chikou Span to cross above the top of the Cloud. Currently, it is just slightly inside the Cloud – I will undoubtedly feel more confident about it being inside the Cloud after Monday’s (January 13th, 2020) close. I feel very confident that we will see an overwhelmingly bullish change in the trend here soon. When Forbes has the CEO of ADVFN confirming that a bullish move in Bitcoin is imminent, you better pay attention!