Bitcoin price soared more than $ 5,000 in a flash in the past 48 to 72 hours, and the forecast just changed from cloudy with a chance of downward movement to much sunnier days for the bulls ahead.
In fact, a technical indicator from here points to at least $ 46,000 and shows that there is very little resistance above that left hand side that is preventing Bitcoin from continuing to make new all-time highs.
The current crypto market price campaign “at a glance”
When markets have been moving sideways for an extended period of time, it can be difficult to tell which direction the asset will move next when the range is finally broken. Throw in a speculative asset like Bitcoin or other cryptocurrencies, and even sideways price movements can feel like a roller coaster of emotion.
After a terrifying decline, anyone who managed to stay on this volatile trajectory could be ready to climb to new highs, according to a market forecasting tool.
Related reading | The Fibonacci sequence and why $ 30,000 bitcoin is so important
The tool developed by the journalist Goichi Hosoda is called Ichimoku Kinko Hyo – which freely translated in Japanese means “a look at a diagram in balance”.
The extremely busy looking tool comes with a myriad of ranges – some lagging, some leading, and others moving directly with price movement.
The next target is the Kijun-sen at $46K | Source: BTCUSD on TradingView.com
The weekly Bitcoin price chart closed as support above the Tenkan-Sen for the first time since losing in April, suggesting that the next stop will be the Kijun-Sen, or the baseline – which is around $ 46,000.
Why new highs are possible according to the Bitcoin forecast
Previous cases in which the highest cryptocurrency by market capitalization retested the key level resulted in a rejection, however in the past a bear market resistance had built up every time that had to be dealt with.
With Bitcoin price still above the cloud in weekly timeframes, there is next to no resistance about when the price action can next recapture the Kijun-sen. Some resistance remains as per the Chikou range – or the trailing range around USD 60,000 – but beyond that there is only clear skies for Bitcoin.
Related reading | Why the next bitcoin bear market will be the worst yet
The Tenkan-sen and the Kijun-sen are the two most important tools within the Ichimoku. Not only can they act as support and resistance to price movement, but when the Tenkan-Sen is above the Kijun-Sen the asset is considered bullish.
Closing above the Tenkan-sen should lead to new highs | Source: BTCUSD on TradingView.com
In even higher periods of time, the Bitcoin price will hold up well above the Kijun-Sen and will be pushed right against the Tenkan-Sen resistance. A close above this level would leave nothing but a bullish crypto chart, with limited resistance and nothing but pricing ahead of us.
Is this next for Bitcoin?
consequences @TonySpilotroBTC on Twitter or over the TonyTradesBTC telegram. The content is educational and should not be viewed as investment advice.
Featured image from iStockPhoto, Charts from TradingView.com