Bitcoin surges towards $28,000, breaking out of the Ichimoku cloud.
The price of Bitcoin has risen during the day, breaking above the Ichimoku cloud on the BTC CME Futures daily charts.
This signal has previously caused the entire cryptocurrency market to soar higher. Will the crypto market continue to rise, or will investors experience more losses?
Bitcoin Storms Above $28,000 After Technical Breakout
Today, BTCUSD rose 4%. Although the increase is relatively small, it was enough for a major breakout of the Ichimoku cloud on daily timeframes.
It is important to note that this signal has only appeared on BTC CME Futures daily charts so far. On spot BTCUSD charts, Bitcoin still has some way to go. However, the breakout on the BTC1 continuous contract chart could be a sign of what is to come.
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Shortly after the price rose above the top of the cloud, the top cryptocurrency by market capitalization surged towards $28,000 per coin. If history is any indication, the sky could be the limit for higher prices.
Bitcoin has breached above the cloud | BTCUSD on TradingView.com
Why Blasting Above The Cloud Could Mean Liftoff For Crypto
The Ichimoku cloud consists of Senkou span A and B. When these two spans twist, it can change the color of the cloud from green to red, or from red to green. The cloud itself can also expand and contract based on price volatility and can act as support and resistance.
Bitcoin breaking out of the Ichimoku cloud was a crucial breach of dynamic resistance. In the comparison above, BTC leaving the cloud in 2020 led to the most recent bullish rally in crypto. In 2021, after the second top at $68,000 per coin, Bitcoin retested the cloud and fell right through it.
This time, not only did the retest hold, but today’s rally also pushed the BTC CME Futures daily chart above the cloud, the Tenkan-sen, and the Kijun-sen. This means that according to the Ichimoku, there is very little daily resistance left. If Bitcoin behaves like the last time it left the cloud, it could be time for liftoff.
A close above the cloud could clear #Bitcoin for liftoff
2020×2023 pic.twitter.com/CtC9RyEXen
— Tony “The Bull” (@tonythebullBTC) June 20, 2023
