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19.04.202116:56 Forex Analysis & Reviews: Ichimoku cloud analysis of Bitcoin

Bitcoin was in crypto headlines during the weekend as price made a sharp reversal lower and a deep pull back from above $60k to $50k. As we mentioned in previous analysis, the chances of a major reversal in Bitcoin and a deeper correction towards $40k are high. Today we use the Ichimoku cloud indicator to identify key support and resistance levels.

Exchange Rates 19.04.2021 analysis

Bitcoin continues to trade above the Daily Ichimoku cloud since $11,000 price level. Although we have some weakening signs as price is breaking below the tenkan-sen (Red line indicator) and the kijun-sen (yellow line indicator), trend remains bullish as long as price is above the Kumo (cloud). Price is now challenging this cloud support. This support is found at $54,400. Breaking below this level trend changes to neutral. Next support will be at $49,300. If price breaks below the Ichimoku cloud trend will change to bearish. Resistance by the kijun-sen and tenkan-sen indicators is at $57,700. Bulls need to recapture this level in order to decrease chances of a bigger correction. More aggressive traders would buy this dip since price is right above the major support and would close positions if this support is broken ($54,400). Less aggressive traders would prefer to buy once price breaks above the tenkan-sen and kijun-sen indicators.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Alexandros Yfantis,
Analytical expert of InstaSpot
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