Bitcoin The Important Setup

Let's look at Bitcoin market using amazing Ichimoku indicator.

After the bouncing from 3200.00 support and further upward movement, the price could not pass through the cloud and start a new uptrend. Senkou A line could stop the market and we got a price reversal with a falling to 3500.00 support. Now we have 2 zones at 4100.00 and 3500.00 which act as borders of a possible price channel.

DMI indicator shows range market conditions where ADX line is below 20 and moves sideway. It looks like the market is going to continue the sideway movement and repeat the same setup which we already could see in September-November.

In that period we also had a failed attempt to move above the cloud, the falling to a strong support at 6000.00 and the sideway movement for about 2 months. After that, the price broke the support and we could see a strong falling to 3000.00 support zone.

We have to remember that all sideway movements are finished by a breakout out of a range.

The same goes about the range which we can get these weeks. Just the most important question will be - in which direction the price will break the range?

For confirmation the further upward movement, the market will have to move above the cloud. It will confirm the strength of bulls. If DMI supports the breakout by ADX moving above 20 level and higher, we will be able to expect reaching 5000.00 and 6000.00 resistance levels very quickly. This variant looks more realistic as the market is at the possible bottom and only fundamental news playing again the crypto will be able to push the market downward. For confirmation further falling the price will have to break 3000.00 support. If so, 2000.00-1800.00 support zone, 1000.00 support level will be the targets for a bearish market.