Weak Resistance Near $9000 Suggests Bitcoin Will Break Psychological Level by April 24
Bitcoin (BTC) has galvanized on recent gains, testing the $9,000 handle multiple times over the past 36 hours. The window of opportunity for bulls is short, but it looks likely we will see a major buy signal given by April 24 for BTC-USD.
The daily chart below shows that BTC-USD’s trend change was confirmed on April 14, with the market closing above the Alligator. The most recent fractal resistance above the Alligator and the current price action lies at $11,700, suggesting plenty of leverage for an upward move.
The Awesome Oscillator switched from negative to positive on April 16, indicating a shift in momentum in favor of bulls.
Breaking Weak Resistance
Similarly, according to the Ichimoku cloud indicator, an upward trend is confirmed on the daily chart according to April 21’s closing price. As reported by BTCManager previously, we anticipated a test of the thin cloud near $8900 and the market has made this move. On April 21, the market closed at $8,912.5, just above the upper span of the cloud at $8,894.
Up until April 23, the upper span of the cloud is at $8,958.52, suggesting we should look for a daily close above this level on April 22-23, and add to a potential long position. In summary, if the price action remains above the cloud and starts moving away by April 24, this would signal an upcoming upward trend over the medium term.
Targets indicated by the lagging line (purple) show that a move to around $9,500 would be first on the cards, with a potential move for $11,500 over a longer period.
On the other hand, if the price is subdued below $8,958.52 by April 23’s close and re-enters and stays within the cloud until April 25, we see that the red cloud is fatter and provides a much stronger resistance (or support in case of a bullish breakout).
The bearish scenario is shown by the blue arrows, while the bullish scenario is illustrated by the orange arrows.
Renko Charts Indicate Equilibrium Above $10,000
The Renko charts indicate resistance at $9,061.10, but the trend is up, with a daily close above $9,169.20 painting another green Renko. On April 20, the third Renko candle closed above the conversion line, giving a weak bullish signal. The cloud on the Renko chart shows an equilibrium zone between $13,000/$12,000 to $10,000 for the month or so ahead.
The formation of a red Renko candle will suggest a change in trend, and prompt traders to take profits/exit longs and/or enter short positions.
Disclaimer: The author holds bitcoin.