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Bitcoin Tests Ichimoku Cloud's Upper Band In A Mixed Market

Published 07/23/2018, 11:51 PM
Updated 07/09/2023, 06:31 AM

We had a mixed market on Monday with Bitcoin showing the biggest gains in months, while some other major cryptos dropped.

The biggest gainer of the day in top 100 was Holo’s token, HOT, ranking 81 based on market capitalization, which surged up to 50%.

The biggest loser was Bitcoin Diamond’s token, BCD, ranking 42 on market cap list which dropped 50%.

Back to the celebrity of them all, Bitcoin appeared to be testing the upper band of the daily Ichimoku cloud by the end of Monday’s trading day. This coincides with the completion of the reversed head-and-shoulders chart pattern we talked about in the past few weeks.

BTC/USD D1 Chart

These are super important technical observations, because a break above the cloud could indicate a stronger-than-expected bullish momentum for Bitcoin, which could open doors for further gains back towards the 23% Fibonacci retracement level of $9,900. Further on, the Ichimoku Kinko Hyo analysis, the Tenkan line and Kijun line are both moving up, while the Chiko span has yet to break through the cloud.

Personally, I’m withholding buying more Bitcoins at this time for long-term investments as I believe even a new round of bullish momentum could be capped below either 23% or 38% Fibonacci levels. Based on the study of market sentiment, current Bitcoin fundamentals and technicals, we still could see another dive down towards the $5,000 level before the real bullish uptrend starts to take BTC to the new highs.

*This article was originally published here.

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