Can Bitcoin Become Bullish By April 23rd?
Introduction
We all know that Bitcoin has been bearish since December and it has failed to break the downward trendline marked as 'long term resistance' on the log scale graph since then, however it has touched it many times. This resistance has been very strong however from the 31st of March the resistance has been extremely weak (according to the Ichimoku cloud) meaning a move upwards now until April 23rd is easier to make than any time before or the near future. We have seen a rally upwards and it may be possible for Bitcoin to break the long term resistance and become bullish again. Let's look at the indicators.
Bullish Indicators
- Support at $7850 has been tested and confirmed twice therefore we can potentially make a move upwards to break $8400 resistance that has only been tested once
- The Ichimoku cloud is very thin indicating little to no resistance at the downtrend line up until April 23rd
- After a rally upwards, if the rally is to continue, it usually consolidates before continuing... as it is doing now
- RSI is turning up and is not in overbought therefore has plenty of room to breakout upwards
- MACD has turned bullish
Neutral Indicator
- The Ichimoku 9 and 26 Moving Averages are moving really close to each other and a bullish crossover can potentially happen, this will push the price up and if price breaks the cloud then we will see more bullish momentum as we have broken out of the downtrend
- Additionally, if both moving averages do not cross and move further apart, bearish momentum could occur enough to break the $7850 support
Bearish Indicators
- The long term resistance has never been broken which indicates this trend line may hold against the bulls if there isn't enough trade volume
- 200 Moving Average has crossed over 100 Moving Average suggesting Bitcoin continuing the downtrend
- Resistance at $8400, when this price was touched, Bitcoin dropped really hard
Summary
We have until April 23rd to break out of this downtrend otherwise it will be evermore difficult to do so. There are a lot of mixed signals at the moment and there are two things to be focusing on at the moment.
1) Whether the price will break either the $8400 resistance or $7850 support as this will determine the next move Bitcoin will make
2) Whether the Ichimoku moving averages form a bullish crossover as this will also determine Bitcoin's next move
As always, I will be updating you every step of the way!
Any comments or messages will be much appreciated. If you want me to do some technical analysis on any other coin, please let me know!
BTC donation wallet address : 17xaafCmrBj3TL4rXNczuuM1MuvEGwX6XJ
LTC donation wallet address : LNDYMjUEJqo1EuexEbTX6E157tZDBGqtgR
I am not a financial adviser, please trade at your own risk.
We all know that Bitcoin has been bearish since December and it has failed to break the downward trendline marked as 'long term resistance' on the log scale graph since then, however it has touched it many times. This resistance has been very strong however from the 31st of March the resistance has been extremely weak (according to the Ichimoku cloud) meaning a move upwards now until April 23rd is easier to make than any time before or the near future. We have seen a rally upwards and it may be possible for Bitcoin to break the long term resistance and become bullish again. Let's look at the indicators.
Bullish Indicators
- Support at $7850 has been tested and confirmed twice therefore we can potentially make a move upwards to break $8400 resistance that has only been tested once
- The Ichimoku cloud is very thin indicating little to no resistance at the downtrend line up until April 23rd
- After a rally upwards, if the rally is to continue, it usually consolidates before continuing... as it is doing now
- RSI is turning up and is not in overbought therefore has plenty of room to breakout upwards
- MACD has turned bullish
Neutral Indicator
- The Ichimoku 9 and 26 Moving Averages are moving really close to each other and a bullish crossover can potentially happen, this will push the price up and if price breaks the cloud then we will see more bullish momentum as we have broken out of the downtrend
- Additionally, if both moving averages do not cross and move further apart, bearish momentum could occur enough to break the $7850 support
Bearish Indicators
- The long term resistance has never been broken which indicates this trend line may hold against the bulls if there isn't enough trade volume
- 200 Moving Average has crossed over 100 Moving Average suggesting Bitcoin continuing the downtrend
- Resistance at $8400, when this price was touched, Bitcoin dropped really hard
Summary
We have until April 23rd to break out of this downtrend otherwise it will be evermore difficult to do so. There are a lot of mixed signals at the moment and there are two things to be focusing on at the moment.
1) Whether the price will break either the $8400 resistance or $7850 support as this will determine the next move Bitcoin will make
2) Whether the Ichimoku moving averages form a bullish crossover as this will also determine Bitcoin's next move
As always, I will be updating you every step of the way!
Any comments or messages will be much appreciated. If you want me to do some technical analysis on any other coin, please let me know!
BTC donation wallet address : 17xaafCmrBj3TL4rXNczuuM1MuvEGwX6XJ
LTC donation wallet address : LNDYMjUEJqo1EuexEbTX6E157tZDBGqtgR
I am not a financial adviser, please trade at your own risk.
Comment:
We have surpassed the long term down trend line which is extremely bullish. However we couldn't get passed the Ichimoku cloud. This could be a fake breakout so don't open any trades just yet.
Comment:
Bitcoin has successfully broke out, please wait for next idea as I will post targets then! Bitcoin is finally bullish!