Bitcoin – Bullish Signals and Possible Correction
Bitcoin / Dollar BITSTAMP:BTCUSD
Let’s look at Bitcoin market using one of the best technical indicators like Ichimoku .
The price moved above the cloud at the end of March, and from that moment, we should consider Bitcoin market as bullish one. After that, the price moved upward and confirmed the uptrend. The resistance zone at 5000.00 was reached and now we can see a sideways movement around this level.
The price is supported by 5000.00 level, Tenkan, and Kijun lines. DMI is bullish and confirms trend market conditions. RSI is going to move back to the overbought zone, and now it gives a bullish signal.
If we look at these signals, we can see that the market is going to continue the uptrend. The market forms a pennant chart pattern which belongs to a continuation group of patterns. The price breaks the upper line of the pennant and it confirms the upward movement too. Based on this pattern the profit target should be around 6000.00 which is a strong resistance zone .
The market can continue the upward movement after a sideways correction as there is a demand in the long run and there are a lot of people involved in crypto trading who knows nothing about market movements and Technical Analysis . FOMO can be the reason for pushing the price upward without correcting the previous upward movement. If so, we should expect a deep correction movement from 6000.00 resistance level .
But if we look at the daily timeframe , the bouncing from 5000.00 with the correction to 4000.00 and continuation of the uptrend from that zone, it could be more logical.
Source: TW DLavrov