Bitcoin (BTC) Finally Breaks Above Ichimoku Cloud Resistance, Targeting $100K

This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole. Bitcoin (BTC) has finally surpassed a key resistance

Bitcoin (BTC) price rose more than 5% in the 24 hours to 88,550 on Wednesday, continuing its recent recovery rally.

The world’s largest cryptocurrency also broke above the Ichimoku cloud, confirming a bullish shift in momentum.

Other major cryptocurrencies are lagging.

What happened: Bitcoin has moved above the Ichimoku cloud, which is used to identify support and resistance, momentum, and trend change in price actions.

The indicator comprises five lines: Leading Span A, Leading Span B, and the gap between the two, which is called the cloud; Conversion Line or Tenkan-Sen (T); Base Line or Kijun-Sen (K); and a lagging closing price line.

Crossovers above and below the cloud represent bullish and bearish shifts in the market trend. BTC has moved above the cloud, as seen in the chart below.

The breakout means the cloud can now act as support, offering support in case of price pullbacks. Earlier this year, in February and March, the coin faced resistance at the cloud, capping recovery rallies. BTC is also back to trading above the 50-, 100-, and 200-day simple moving averages (SMAs).

This move now puts the focus on the major psychological level of $100K, followed by the all-time highs above $109K.

On the downside, support is seen at $88,550, which marks the convergence of the 200-day SMA and the Ichimoku cloud. A move below the same would negate the bullish outlook.

Altcoins lag: Major altcoins such as XRP, DOGE, ADA, ETH, and SOL are yet to chart a BTC-like bullish breakout above the Ichimoku cloud.

The above coins, though buoyant alongside BTC’s ascent, have yet to make their respective bullish breakouts.