Cryptocurrency Ichimoku Analysis
The Ichimoku Kinko Hyo system is my favorite trend trading system – and easily the most profitable I have ever traded. It is also an excellent measure and gauge of what the market is doing and what it may do next.
Litecoin (LTC) Daily Ichimoku Chart
Litecoin’s daily Ichimoku chart shows one of considerable strength and clear evidence of continued upwards momentum. If we look back towards April 29th, 2019, we can see price was very close to crossing below the Kumo, which was a very thin Kumo. In the Ichimoku system, the most important trait of the Kumo is how thick or thin it is. A thick Kumo represents strength – price will have a considerably difficult time moving above or below a thick Kumo. A thin Kumo represents weakness – price can easily move above or below a thin Kumo. So on April 29th, I had a little apprehension about the continued bullish momentum, but traders came in to support Litecoin. And if we look at Litecoin’s current trend, it is a trend that is up and looks to continue to keep moving up. In fact, at the time of writing this, we look to be entertaining new 2019 highs – and year over year, Litecoin is presently trading higher. Price continues to find support against the Kijun-Sen and the Kumo is getting thicker. The Chikou Span is also in open space. There is currently nothing within the Ichimoku system on the daily chart which would indicate any resistance ahead. While the weekly Ichimoku chart is now shown here, that chart does tells us where the next major resistance is: the top of the Kumo on the weekly chart at $150.
0x (ZRX) Weekly Ichimoku Chart
0x is one of my biggest holdings in my crypto portfolio. It has also been one of the biggest frustrations in my portfolio. Out of all the cryptocurrencies I trade and invest in, 0x is a clear laggard and under performer. However, I believe those fortunes are about to change and the extended down and lagging moves should have a slingshot effect soon. Looking at 0x’s weekly chart tells me one thing: it’s never had a bullish Ichimoku chart on a weekly time frame. Most of this is due to the fact that the trading history for 0x is to recent – but it is till quite bearish. 0x has yet to have a bullish and sustained cross above the weekly Kijun-Sen on the weekly chart. Hell, the last time the Tenken-Sen crossed the Kijun-Sen was back in the week of March 5th, 2018. Currently, 0x is trading above both the weekly Tenken-Sen and Kijun-Sen. Near term resistance is the bottom of the Kumo which is presently above at 0.73 – but I think more realistic area is at 0.48. I am adding some considerable positions to 0x once the Chikou Span is above the current candlestick range.
Basic Attention Token (BAT) Daily Ichimoku Chart
Basic Attention Token is certainly one of the greatest over performers in the cryptocurrency space. It has been over performing not just in its price action, but in its fundamentals and actual use cases. The chart above may look a little weird – I removed the wicks from the candlesticks. I actually do this quite often with many cryptocurrencies as their wicks are just to ‘dramatic’ and I believe we get a better view of what is going on if we just observe the open and the close. There is a very clear bull flag pattern on BAT’s chart here. The weekly Kijun-Sen is just below near the 0.32 zone, but I am entering long here again when price breaks above the Kumo and the Chikou Span is also above the Kumo. That would occur at 0.4079.