Currently (2:34 PM CST), Bitcoin is hovering around the 11250 value area. This zone is important for a couple reasons. First, the 11250 zone is the next resistance area we must cross and close above. Second, the long-term downtrend line is near that area and this represents one of the strongest resistance patterns on the charts.
1. The long-term downtrend line (thick, red diagonal line) represents the last major trendline Bitcoin needs to breach before continuing higher and showing further evidence of a reversal. We have very strong bull moves with our Ichimoku charts as well:
- Price is above the 1-hour, 4-hour, and 8-hour clouds.
- Price is above both the Conversion Line and Base Line.
- Lagging Span is above the cloud.
- Supportive dip buying when price returns the cloud, Conversion Line, and Base Line.
Bitcoin is the only major coin that has not moved beyond its longterm downtrend line. The consolidation near this area is healthy, expected and is the kind of price action that we want to see before price bursts higher.
1. While Bitcoin is the only major coin that has not moved beyond its long-term downtrend line, Ethereum is the only major coin which has not shown a true structural breakout pattern. We are looking for moves in Ethereum that look like what we saw in Litecoin last week: big, massive moves on large volume. Structurally, Ethereum is in a tight zone. The orange diagonal line represents Ethereums longterm downtrend line. The arc represents strong resistance. The Ichimoku system is telling us that we are in a ‘squeeze’. What does this mean?
If we look at the current momentum and movement of the entire cryptomarket, we can see massive inflows of money and large amounts of buying. Ethereum is coiled. It is accumulating. It is getting ready to burst. It wouldn’t be a surprise to see Bitcoin, Ethereum and Litecoin both show massive bull moves in the next 24 hours.