Hello traders,
I have been talking about shorting Bitcoin when Bitcoin hit $4000, and I am still not changing my bearish view until Bitcoin proves me otherwise.
Today, I would like to analyze Bitcoin using Ichimoku cloud. In case if you do not know Ichimoku cloud, it is an technical indicator that defines support/resistance, as well as overall trend strength. The uptrend is strengthed when the green cloud line is rising and above red clound line, which produces green cloud (essentially, thicker the cloud, the heavier strength will be).
For example, if you look around January this year, the red Ichimoku cloud was so thick that Bitcoin was not able to scale above 4200. Conversely, on Feb 16th, we saw Bitcoin went above $3700 level because the cloud was thin.
So if we look current situation, we see that there is strong cloud support around $3850 region, where we historically see confluent layer of support. However, notice that the clound is thinning on March 30th, and this will be the pivotal point for Bitcoin. If bears are setting for an ambush, this will probably the best opportunity for them. Why?
1) Daily MACD bearish crossover
2) Daily Stoch RSI is almost below 40 which signifies bearish momentum
3) Weekly Stoch RSI bearish crossover
4) Majority of US Stocks opened lower today, as there is a globe growth fears. If tech company is not doing well, most likely cryptocurrency space will not go well.
What keeping Bitcoin alive is the orange ascending trendline in the chart. If Bitcoin breaches this trendline, there will be a huge sell-off.
Happy trading!
I have been talking about shorting Bitcoin when Bitcoin hit $4000, and I am still not changing my bearish view until Bitcoin proves me otherwise.
Today, I would like to analyze Bitcoin using Ichimoku cloud. In case if you do not know Ichimoku cloud, it is an technical indicator that defines support/resistance, as well as overall trend strength. The uptrend is strengthed when the green cloud line is rising and above red clound line, which produces green cloud (essentially, thicker the cloud, the heavier strength will be).
For example, if you look around January this year, the red Ichimoku cloud was so thick that Bitcoin was not able to scale above 4200. Conversely, on Feb 16th, we saw Bitcoin went above $3700 level because the cloud was thin.
So if we look current situation, we see that there is strong cloud support around $3850 region, where we historically see confluent layer of support. However, notice that the clound is thinning on March 30th, and this will be the pivotal point for Bitcoin. If bears are setting for an ambush, this will probably the best opportunity for them. Why?
1) Daily MACD bearish crossover
2) Daily Stoch RSI is almost below 40 which signifies bearish momentum
3) Weekly Stoch RSI bearish crossover
4) Majority of US Stocks opened lower today, as there is a globe growth fears. If tech company is not doing well, most likely cryptocurrency space will not go well.
What keeping Bitcoin alive is the orange ascending trendline in the chart. If Bitcoin breaches this trendline, there will be a huge sell-off.
Happy trading!
