The price of bitcoin has surged over $5,000 like a flash of lightning over the past 48 to 72 hours, and the forecast has just turned cloudy with the potential for more sunny days ahead for the bulls.
In fact, a technical indicator points to at least $46K from here, and shows that there is little resistance above this left that prevents bitcoin from setting new all-time highs.
Current Crypto Market Price Action “At a Glance”
When markets move sideways for an extended period of time, it can be difficult to tell in which direction the asset will move once the range breaks out. Throw speculative assets like bitcoin or other cryptocurrencies into the mix, and even sideways price action can feel like a rollercoaster of emotions.
According to a market forecasting tool, anyone who managed to stay on this shaky ride may be ready to climb to new highs after a catastrophic sweep low.
Related Reading | The Fibonacci Sequence and Why $30K Bitcoin Is So Important
The instrument, created by journalist Goichi Hosoda, is called the ichimoku kinko hyo—which loosely translates to “a look at a chart in balance” in Japanese.
The very busy looking tool is equipped with a variety of spans – some lagging, some leading, and others moving right along with the price action.
The next target is the Kijun-sen at $46K | Source: BTCUSD on TradingView.com
The weekly bitcoin price chart closed above the tenkan-sen for the first time since losing support in April, which suggests that the next stop is the kijun-sen, or the baseline – located around $46,000.
Why bitcoin forecast says new highs are possible
Previous instances where the top cryptocurrency by market cap re-tested key levels resulting in rejections, however, have built up bear market resistance each time it tackles in the past.
Bitcoin price is still above the cloud on the weekly time frame, with no resistance left above if price action can retest the Kijun-sen next. According to Chico Span some resistance has been left behind – or a gap of around $60,000, but beyond that point there is nothing but clear skies for bitcoin.
Related Reading | Why the next bitcoin bear market will be the worst yet
The tenkan-sen and kijun-sen are the two most important instruments within ichimoku. Not only can they act as support and resistance for price action, but if 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
On an even longer time frame, bitcoin price is trading just above the Kijun-sen, and pressing just above the Tenkan-sen resistance. The level above here will leave nothing but a bullish crypto chart except limited resistance and further price discovery.
Is this what’s next for bitcoin?
obey @TonySpilotroBTC on Twitter or through TonyTradesBTC Telegram. The content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com