Bitcoin has been running towards the sun for the past few days now. It has seemed unstoppable. Before breaching $6000 definitively, it bounced around the 5700-6100 mark for quite a while. A similar resistance may be faced by it at the $7400 mark, as it keeps bobbing upto this mark, but fails to quite breach it. So what does the Ichimoku tell us? We'll go small scale to large scale, to get different perspectives from different time scales.
First, lets look at the 15 M Chart :
The price fell below the kumo briefly, but it's back in the cloud. Price in the cloud indicates a price at equilibrium, meaning it's a do- not- trade signal. Also the Kijun-Sen (the red line) is above the Tenkan-Sen (the blue line) indicating a negative sentiment at least for the short term. What I'd like to see is the price breakout of the cloud, and the Tenkan-Sen to cross over and come below the Tenkan-Sen, which will signal a continuation of the super run we've been having at the larger scales.
Zooming out a bit to the the 6H scale, the current confusion seems quite insignificant. The last two bars are red, indicating 12 hours of selling, but it's a fair bit away from the Tenkan Sen and the Kijun Sen, so the trend is nicely intact still. Do note though, that the Kijun-Sen is flattening, which can indicate a period of trending and consolidation.
Lastly, the 1 day Chart. This is a macro view. It's a beautiful chart and it shows a solid bull run. Keep in mind that the price is approximately 37% away from the Kijin-Sen, which is quite a distance. When the price is so far away from equilibrium, you need to be vigilant. A return to the Kijun -Sen from time to time is rather healthy as also excellent points of re-entry.
