Bitcoin has started a correction yesterday

Bitcoin has started a correction yesterday, which is looking like a complete reversal. BTC price is now above the descending trend line, alerting traders to the possibility of significant short and midterm changes. BTC/USD has entered the Ichimoku cloud during the American and Asian sessions. It is still there and is testing the upper boundary of the formation.

As we can see, there was one Shooting Star during the Asian session, which led the currency pair to a brief decline towards the lower boundary of the Ichimoku cloud. We now have two more Shooting Stars which are able to drive BTC price to the lower side of the formation, as there is a sort of channel trading now, which is natural for such situations when the price is within the Ichimoku cloud.

The lower boundary of the Ichimoku cloud coincides with the $9,200 support line. If Bitcoin price goes there, BTC/USD will test this line and we advise readers to look for candlestick signals close to the support area. If the candles indicate reversal, the price will probably rebound from the support and go upwards. If there are no signals and BTC price falls below the support, BTC/USD will probably move to meet the descending trend line.

There is another scenario, where Bitcoin fails to fall towards the support area and breaks through the upper boundary of the Ichimoku cloud without any further correction. Then, it is going to test the $9,440 area.

As for the daily chart, the midterm picture had no significant changes. However, we can see that the upper boundary of the Ichimoku cloud held BTC price above the formation and there is probability for the development of an upside tendency.

Check the full crypto analysis HERE