In my own trading diary (and yes, I have one, as should all traders), I always take a look at the weekly charts for the instruments I trade. Weekly charts give a more broad idea of what is happening when compared to the daily chart, but also a more smooth idea of what is happening compared to the monthly chart.


Bitcoin Weekly Ichimoku Analysis



Bitcoin’s weekly Ichimoku chart shows a somewhat mixed signal. When we consider that the Lagging Span falling above or below the cloud is a major triggering event for a breakout trade, we can see that occurring on this chart back on the week of November 23rd, which is when the market took the largest percentage drop of 2018 occurred. However, there has not been a strong follow through after the break of the cloud. In fact, we saw a pretty stiff area of support that was found when both price and the Lagging Span got to the closest harmonic of Jupiter. Also, price is still above the 2018 low, but we could experience a swift and fast drop down to the full Jupiter line at 3000.


Bitcoin Daily Ichimoku Analysis



Bitcoin has been testing an important level on the daily chart: since the major drive up on January 6th, 2019, Bitcoin had been riding up against and oscillating above and below the bottom of the daily cloud. Thursday’s trade, however, showed price finally making a move in a clear direction; and that direction was down. Not only did price fall down below the cloud, but it also dropped below the Conversion Line and Base Line. There were also two pieces of astronomical data that occurred on Thursday’s trade. First, price moved below a harmonic of Jupiter’s longitudinal line (red ‘diagonal’ line). Second, the drop down occurred when a Conjuntion between the Sun and Pluto occurred. Historically, the conjunctions of Pluto and the Sun have been near a market swing low. But prices also have a high probability of rising after this conjunction period completes. When does it complete? It completes on Sunday, the 13th of January 2019. Depending on the price action, we could see a return back above the bottom of the cloud and back above the harmonic of Jupiter. If not, then we could very well see a drop below 3k.


There has not been a clear ‘bottom’ establish on either the weekly or daily charts, but there is a large amount of evidence that suggests the bottom is very near. Ethereum is a primary example – it has rallied significantly against the broader market and has outperformed Bitcoin. More than likely investors and speculators are awaiting arguably the single most important and big catalyst involving cryptocurrencies since the first cryptocurrency exchange opened – and that is the SEC’s decision on approving Bitcoin ETFs. However, more importantly, it is expected that the SEC will provide further guidance and direction for the future.