Bitcoin has continued to slide lower yet again this week, with no real respite from the selling of lower highs on most and almost every occasion.
Going into this week, and Biyond's own indicators don't look too great either, with a potential weekly sell signal lined up for Biyond Vanguard unless we see a dramatically higher price close on the weekly candle above $66,500.
Source: Biyond.co
This week I thought it would be interesting to look at the Ichimoku indicator in order to get a sense of the bearishness surrounding Bitcoin technically.
Most interestingly, Bitcoin is now starting to close the price below the Ichimoku Cloud indicator on the daily time since this past Friday.
Source: Tradingview.com
Since November 2022 Bitcoin has been able to perform a few daily price closes below the daily cloud, but bears have made no real traction before an upmove ensued.
Source: Tradingview.com
Typically, moves under the cloud have been followed by large periods of consolidation. What should we take away from this latest move?
I believe the biggest takeaway here that Bitcoin should not stray too far from the Ichimoku cloud, currently set around the $64,700 level.
Source: Tradingview.com
Bitcoin dropped by around $4,000 after piercing the Ichimoku cloud back in May 2024, but ultimately, Bitcoin recovered back in the cloud in around 4-days.
BTC dropped by around $1,000 back in January this year, but managed again only a few days under the cloud before rebounding sharply and hitting a new ATH.
Source: Tradingview.com
If the unthinkable happens and BTC starts breaking much lower then we need to look to the weekly time frame for future support.
According to the weekly time frame the $56,000 and the $49,000 levels are the next big support levels to watch.
Source: Tradingview.com
Something that gives me great comfort is the fact that the $58,000 was extremely well-defended back in May.
Although Bitcoin briefly fell under 58,000, the key point is this is something that Bitcoin could not do during the previous bull market.
Technically, it was very important that Bitcoin did not fall through the $58,000 level during the last price correction.
It really is so very important that it does not if Bitcoin continues to slide again this week.
Source: Tradingview.com
Going into this week the 4-hour Ichimoku cloud is screaming that a recovery is going to take hold if BTC cuts through the thick cloud resistance between $65,000 and $67,100.
On the daily time frame, and bulls can only get excited if we see a close above the $67,700 level, as this would clear all daily resistance.
Past $69,300 and the likelihood of a new ATH is very high, as Bitcoin would be free of any meaningful resistance.
