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Bitcoin price heads to $48,000 before it encounters stiff resistance

  • Bitcoin price prepares for a breakout above the Ichimoku Cloud.
  • Key, near-term resistance is in the $43,000 value area.
  • A successful close above the Ichimoku Cloud sets the stage for new all-time highs.

Bitcoin price is coming off of the single most bullish and optimistic weekly candlestick close since the current downtrend (and new all-time high), which began during the week of November 12, 2021. Bulls look to capitalize on last week’s performance and continue moving higher.

Bitcoin price begins a new uptrend as price action pauses against a critical resistance zone

Bitcoin price is currently trading between two key price levels. The first of the levels is a support zone between $41,200 and $41,700 made up of the 2022 Volume Point Of Control and the 61.8% Fibonacci retracement. The second level is a resistance zone at $42,800 shared by the top of the weekly Ichimoku Cloud (Senkou Span A) and the weekly Tenkan-Sen.

If buyers can push Bitcoin to a close at or above $43,000, it would represent the first time Bitcoin price has closed above the Ichimoku Cloud after a downtrend since the week of May 8, 2020. Moreover, considering the current oscillator values and positions, a bullish breakout is highly probable.

While a bullish breakout above the Ichimoku Cloud is a highly positive sign, the Chikou Span would still be in limbo – it would remain below the bodies of the candlesticks and inside the range of the candlesticks. As a result, a good number of conservative buyers are waiting for an Ideal Bullish Ichimoku Breakout entry, which will only happen when the Chikou Span is above the bodies of the candlesticks.

BTC/USD Weekly Ichimoku Kinko Hyo Chart

The earliest that Bitcoin price can complete an Ideal Bullish Ichimoku Breakout entry is with a weekly close at or above the $47,800 price level.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

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