Ichimoku Kinko Hyo provides a system that creates excellent variables for entries that help keep a trader in a trend – or at the beginning of a new one.


Bitcoin (BTC) Ichimoku Analysis

BTC Ichimoku Chart

The chart above is Bitcoin’s 1-hour Ichimoku chart. The current candlestick shows a very bullish condition. Just below the current candlestick is what is known as a Kumo Twist. This happens when Senkou Span A crosses Senkou Span B. When this happens, it creates an area where the is almost no Kumo or a very, very thin Kumo. Thin Kumo’s are an extremely weak zone where price can move very easily above or below. There was some evidence that Bitcoin might experience some further downside movement – until Bitcoin move above that Kumo Twist. If Bitcoin can maintain a level above that twist and if it continues to find support against the top of the cloud, then a return to $5500 and higher is very easy.

Ethereum (BTC) Ichimoku Analysis

ETH Ichimoku Chart

It’s been a little while since I’ve done an article with Ethereum. It’s been a laggard compared to Bitcoin, Litecoin and a number of other top 20 cryptocurrencies. The Daily Ichimoku chart (above) shows clear support for Ethereum’s price being found when price drops to the Kijun-Sen. There is also a bullish continuation pattern in the form of a bullish pennant. While pennants are powerful continuation patterns, they do have a higher probability of initiating reversals than their flag pattern counterparts. Evidence of further consolidation is present, especially given the proximity of the Chikou Span to the candlesticks. I am going to wait until the recent swing high (and 2019 high) of 187.62 is broken. That the Chikou Span in open space and it would put price above the pennant and above the 2019 high.

Litecoin (LTC) Ichimoku Analysis

LTC Ichimoku Chart

While Bitcoin and Ethreum both have bullish pennants on their charts, Litecoin has a much more favorable continuation pattern: Bullish Flag. The Daily chart above shows this downside move has existed almost the entirety of the month of April. I recently wrote about Litecoin having a possible breakout of this zone two weeks ago, but Litecoin has stubbornly and predictably traveled lower. Price has bounced nicely off the bottom of the flags channel, but in order for me to re-enter a long trade, I need to forecast a probable and predictable entry point. For Litecoin, that would be in a couple of areas. While the Ichimoku system would suggest that a re-entry to the buy side could occur when price crosses back above the Kijun-Sen, I also want to be aware of the ideal re-entry from a bullish flag breakout. I will be waiting for price to not only cross above the Kijun-Sen, but above the most recent swing high within the bull flag at $84.59.

Cardano (ADA) Ichimoku Analysis

ADA Ichimoku Chart

 I wanted to show Cardano’s Daily or 4-hour chart – but it’s a pattern we’ve already reviewed in Litecoin’s chart. Instead, Cardano’s 1-Hour chart shows how we can predict a breakout not only on the 1-hour Ichimoku chart but a breakout that would occur of the bullish flag pattern on the longer timeframe charts. The chart above shows some bullish pressure ahead. Price has already broken out above the Kumo, but it’s the Chikou Span that is the most interesting. If you recall the Kumo Twist we observed on Bitcoin’s chart, another Kumo Twist is here on Cardano’s chart. And the Chikou Span is very near that level. Remember: The Chikou Span acts and reacts just like the current price action – so if the Chikou Span does pierce the Kumo Twist higher, we can predict an explosive and violent move to the upside.