Last night at 8PM eastern standard time, Bitcoin price closed its weekly candle at roughly $9,325. While the close marked yet another week of failed attempts to break above $10,000, it also marked the first retest of the Ichimoku indicator Kumo, or “cloud.”
Another retest is in progress and currently holding. If Bitcoin price can hold above the key level and close again, it could be the start of a new, continued uptrend.
Repeated Failures To Break Above $10,000, Is the Next Time The Last Time?
During the 2017 crypto bubble, once Bitcoin price broke above the resistance level, it peaked at $20,000 less than a month later.
Since then, the first-ever cryptocurrency has spent nearly three years trying to get back and hold above the key level.
A mid-2019 rally made it above, even reaching $14,000, but was rejected back below and hasn’t made it back above since.
A handful of attempts have been made, but none of the tries have been able to hold strongly above $10,000. Once the cryptocurrency does make it back above the key level, it could be the last time the asset ever trades at prices below it.
Bitcoin Price Weekly Close Holds Above Ichimoku Cloud
Bitcoin price also couldn’t hold above the Kumo or “cloud” on the Ichimoku indicator during the early 2020 rally that peaked out in February, just ahead of the Black Thursday collapse.
A couple of weekly closes came close to the top of the cloud, but selling pressure pushed prices back through it, and when it came out the other end of the cloud, the asset fell another 50% in a flash.
This time seems to be different, however. During the last rally, Bitocin price again was rejected by the top of the cloud, back into it. However, this time the bottom of the cloud held, prompting another retest at the top of the structure.
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Last night’s weekly close held firmly above the cloud – currently green indicating bullish price action. Another retest of cloud support is in progress and appears to be holding thus far.
If Bitcoin price can hold above the cloud, it may not be long before investors can say goodbye to prices below $10,000 for good.
Adding more validity to the bullish signals on the indicator is a bullish crossover of the two senkou spans.
A further fall and close back into the cloud, or worse, below it, could lead to another test of lows set in mid-March.