Some volatility has returned to the market, causing a good amount of rotation.
So let’s dive into the charts…
„The Ichimoku cloud is hanging over the price of bitcoin.“
I was too early with my call of pushing higher. The 9k was taken out, which is delaying my view for the next leg higher.
In hindsight, I should have put more emphasis on the power of the Ichimoku cloud, which has worked well over the past two weeks. The lower band was nearly respected perfectly as resistance. Since the cloud was downward trending, my call for higher prices went against this current development.
Nevertheless, my medium to long term view is still that we are at the beginning of the next 5-wave sequence higher. Therefore, I am looking to accumulate further long positions at around 8.6k and 8.1k.
The stop for any long positions is just below 7.4k.
Boring as hell. We are right in the middle of the $160-$220 range. But judging by the ETHBTC cross, I am looking for a push towards the upper end of the range over the next few weeks.
The consolidation resulted in the bulls being tired of waiting, and prices came back fairly quickly over the past week. For a greater insight into where we might be heading now in terms of price, I’m switching over to the daily chart.
After breaking into the cloud, my best guess is that we should find good support around the $1,420 area. First, it is the lower band of the cloud, and second, it is the next liquidity pool (volume bars on the right-hand side).
The target was reached a few days ago, which was close to the lower band of the Ichimoku cloud and also the next bigger liquidity pool (volume bars on the right-hand side).
The broader trend is still up, and therefore, I do not expect the price do go below 6.93.
So far my shorts are still open, but as they are continuously banging against the ceiling, my confidence in the position is diminishing. Let’s see if the lower band of the cloud has any significance in relation to the price.
There are no changes to last week’s comment. $310 remains the key level for all short positions.Weiterlesen