“Ichimoku Cloud” Hints Bitcoin is Finally Recovering From a Crucial Area

“Ichimoku Cloud” Hints Bitcoin is Finally Recovering From a Crucial Area

The Ichimoku Cloud is a momentum indicator often used in technical analysis to gauge an asset’s trend. It is currently indicating that Bitcoin (BTC) is healthily recovering from an important support area.

The cloud in the Ichimoku indicator is best described as a support line. If an asset goes too far high up the cloud, it could mean that it is overbought.

But if Bitcoin is steadily recovering within the cloud, then it suggests it is seeing healthy and stable accumulation.

In the near term, traders say that Bitcoin needs to hold above $10,700 to see further upside. In a technical sense, the $10,700 area is a critical support area in the short-term BTC price trend.

Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said:

“Very simple, plain analysis. Holding above $10,700 is beneficial for further upwards momentum. The crucial breaker is $11,150. If that breaks, I’ll anticipate an acceleration towards $12,000.”

The important technical levels for Bitcoin in the short term are $10,700, $11,200 and $12,000. If BTC successfully breaks out of $11,200, which is the resistance level it rejected in early September, $12,000 becomes more likely.

Despite the optimistic outlook of Bitcoin, researchers are becoming cautious in predicting a major altseason.

As NewsBTC previously reported, even major decentralized finance (DeFi) tokens dropped by 40% to 70% in the past two weeks.

Chainlink, as an example, declined by more than 40% since September 12, within merely a month.

Researchers at the on-chain market data firm Santiment explained that large-cap assets, like Bitcoin, recovered in the past week.

However, the researchers noted that the majority of top 100 cryptocurrencies got “decimated.” Due to the overall nervousness in the market, capital has cycled back into major cryptocurrencies.

Considering the trend, the researchers noted that an altseason, especially among small cap cryptocurrencies, might be delayed. They explained:

“In spite of this, the majority of top 100 #blockchains have been decimated. Particularly among mid and small cap assets, the sell-offs have come hard and swiftly. As many longer term traders have experienced over the years, #altcoins runs can be enjoyable when #Bitcoin is climbing. But when volatility hits and mid-sized, market-wide dumps occur as they have over the past month, the small caps generally have the most difficulty recovering.”

For now, the technical strength of Bitcoin after the recovery above $11,000 appears to be buoying the sentiment around altcoins.

Source: icryptodesk.com

Author: admin

Bitcoin Price Prediction: BTC/USD Touches $10,900; Is BTC Ready for a New Bull-Run?

Bitcoin Price Prediction: BTC/USD Touches $10,900; Is BTC Ready for a New Bull-Run?

Bitcoin (BTC) Price Prediction – October 9

BTC/USD is currently moving below $10,900 after the king coin hits an intraday high of $10,947.

Key levels:

Resistance Levels: $11,400, $11,600, $11,800

Support Levels: $10,250, $10,050, $9,850

At the time of writing, BTC/USD is hovering around the $10,880 level after touching the daily high of $10,947. Although, there is a lot of sluggishness in the market as neither the bulls nor the bears are looking to hold the price by the scruff of its neck. Actually, all this may soon change, though. The Bitcoin price needs to keep going strong and pointing towards an upside breakout.

As BTC/USD trades around $10,880 level, the price must close above $11,000 to indeed indicate an upside opening on the daily chart. Previously, the price range between $10,500 and $10,650 acted as support. Therefore, for Bitcoin price prediction to turn more bullishly, it must be taken out decisively by the bulls to turn it into support once again and then continue the momentum forward where it could reach the resistance levels of $11,400, $11,600, and $11,800.

However, a breakout above $11,000 could boost confidence in the coin and increase overall liquidity into the system. Currently, Bitcoin’s rise would certainly give the altcoins a much-needed boost and calm the cryptocurrencies market as well. For Bitcoin to be rejected at $10,947 may eventually lead to declines below the moving averages at $10,600. Should in case the coin drops more, then it could rely on the long-term support levels at $10,250, $10,050, and $9,850 as the RSI (14) nosedives below 55-level.

The long bullish candle on the 4-hour chart shows that bulls had their say at the end of yesterday. The movement above the 9-day and 21-day moving averages shows there are confidence and liquidity in bulls to take the move forward today. However, it seems that Bitcoin’s price prediction is approaching bullish confirmation.

Moreover, if the current bullish move falters, profit booking may bring the price down towards the support level of $10,750 and below. However, bulls could support the price above $10,900 as they have done successfully in the past few days. But if the market price rises above the upper boundary of the channel, it may reach the resistance levels of $11,050 and above. The RSI (14) is seen moving in the same direction above 60-level, indicating a sideways movement.

Source: insidebitcoins.com


Asset Manager Who Predicted Ethereum Outperforming Bitcoin: The Trend Is “Done”

Asset Manager Who Predicted Ethereum Outperforming Bitcoin: The Trend Is “Done”

Bitcoin has done well for itself in 2020, making it the top mainstream investment of the year so far. But deeper in the crypto market, Bitcoin’s gains look meager next to even its next closest asset in line, Ethereum.

Ethereum and DeFi tokens outperformed Bitcoin easily this year so far, but that trend is “done” according to an asset manager. The same asset manager also nailed calling the initial rise against BTC, and they very well could be correct again about what’s to come next.

Now Felman says that this change in trend is “about done,” which means a reversal or potentially some stagnancy between the two top crypto assets.

ethbtc ethereum bitcoin

ETHBTC Daily Triangle Overperformance "Done", Wedge Underperformance Coming | Source: TradingView 

If the Ethereum ratio further falls against Bitcoin, it could be far worse for DeFi tokens still up an enormous amount due to the sudden flood of capital into the low-cap illiquid coins.

DeFi tokens are already down an average of about 60% across the board, with Yearn.Finance, Uniswap, Sushi, and several others performing the worst of the bunch.

Ethereum has held up relatively well comparatively, but if the second-ranked cryptocurrency behind Bitcoin, starts to fall on its ratio also, DeFi is in a lot worse trouble.

Felman didn’t share any comments referencing DeFi, but Ethereum being so central to the trend and showing such weakness, could drag these tokens down further.

Money from the DeFi trend could flow into not only Bitcoin but other non-DeFi altcoins like XRP, that have since lagged behind the rest of the market.

XRP, for example, has been showing signs that its ready to regain some lost ground against both Bitcoin and Ethereum, and could benefit enormously from the flood of funds coming back out of decentralized finance.

Featured image from Deposit Photos, Charts from TradingView

Source: otcpm24.com

Author: News Bureau

“Ichimoku Cloud” Hints Bitcoin is Finally Recovering From a Crucial Area

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