The Bitcoin June candle close is ugly, and clearly shows indecision in the market. Is the bull market structure broken, or are new highs still likely this year? No one knows, and price action has reached a stalemate.
However, the Ichimoku indicator could not only provide information on what happens if support holds or fails across crypto, it could also provide clues as to when Bitcoin tops and even finds its next bear market bottom.
All About The Ichimoku Kinkō Hyō Technical Analysis Indicator
The Ichimoku Kinkō Hyō is a popular technical analysis tool designed by Japanese journalist Goichi Hosoda in the late 1930s. Hosoda was nicknamed Ichimoku Sanjin, which loosely translates to “what a man in the mountain sees.”
Ichimoku Kinkō Hyō also loosely translates to “at a glance equilibrium chart” and is among the few tools out there that provides insight and perspective on price and time.
Price action is stuck between the Tenkan-sen and Kijun-sen | Source: BTCUSD on TradingView.com
The A and B Senkou Spans are plotted forward in time to show where support and resistance might lie and make up the outline of the Kumo or cloud. The Chikou Span is backward-plotted and also shows support and resistance.
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Finally, the Tenkan-sen and Kijun-sen can also play the role of support and resistance, which Bitcoin price is currently sandwiched between on the monthly. The example above shows all these spans in action, and how price action has respected each level.
Importantly, depending on how the two spans are crossed can indicate if the market is bearish or bullish. The Tenkan-sen above the Kijun-sen suggests Bitcoin is bullish, and the sideways movement of the two point to a market in consolidation.
Bitcoin is still bullish according to the last crossover | Source: BTCUSD on TradingView.com
Can The Cloud Predict The Bitcoin Top And Bottom?
Knowing how the Chikou Span…