Bitcoin Price Forecast: Cloudy With A Chance Of Downside

Tony "The Bull" Severino

Last Updated: June 11, 2024 1:55 pm

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin price is back above $55,000 in a lighting fast recovery from below the key level of $50,000. Although the rebound thus far appears as if it is a gift from the heavens above, the technical forecast suggests cloudy days are ahead.

Here’s a closer look at everything going on with Bitcoin “at a glance” and a deep dive into the Ichimoku Kinko Hyo indicator.

Forecast Says Cloudy Days Ahead For Top Cryptocurrency

Spring is in the air. The grass is turning green and the birds are chirping again. As the saying goes, “April showers bring May flowers.”

And although things have been fully bullish for some time in Bitcoin, April has been the first month where things have turned from green, to grey.

April kicked off aggressively, pushing Bitcoin to new highs. The top cryptocurrency consolidated there’s and made one more push higher the day Coinbase Global went public.

The rejection there, however, sent Bitcoin price raining down, and pushed the cryptocurrency into and below the Ichimoku cloud.

If you’re questioning the validity of the cloud, also called the Kumo, then check out the zoomed in shot in the chart below. The example shows price action halting right at the edge of the cloud.

Bitcoin price action stopped right at the top of the cloud | Source: BTCUSD on TradingView.com

Could Bitcoin Price Rain Down Further?

The edge Bitcoin price stopped at is called the Senkou span B or leading span B, together with span A, they form the Kumo that widens and tightens depending on volatility.

When the two spans twist, it is a sign that things have turned fully bearish, which as can be seen is just starting to take place.

However, the Ichimoku indicator is said to offer a full “at a glance” look at the market, so there are more details to pay attention to.

The Tenkan-sen and Kijun-sen – also called the conversion line and base line – have crossed bearish. This itself has happened many times on the daily chart on the way up, but is the first time since the bull market began that Bitcoin is also trading within the cloud while this crossover happens.

The last piece of the Ichimoku indicator’s intel, is the Chikou span, or lagging span. This tool falls back several trading periods and shows where support and resistance might lie.

According to the tool and where price action clustered, the most prominent levels of support left untested if things do turn bearish in the short term, are $34,000 and $18,000 – two levels bulls do not want to return to. Will this cloudy forecast instead bring sunshine in May?

Featured image from Pixabay, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.