Cloudy with a chance of a knockdown

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The price of Bitcoin is in a pivotal area, near a potential point of no return for bulls. However, the weekend forecast may suggest sunnier skies in the future, as long as BTCUSD holds above the weekly Ichimoku cloud.

Here’s a look at weekly BTCUSD ‘at a glance’ timeframes using the Ichimoku Kinko Hyo.

Bitcoin Price Holds Above The Cloud | Source: BTCUSD on TradingView.com Weekly Bitcoin Price Action At A Glance Using Ichimoku

Using nothing more than the bare Ichimoku chart above, the weekly BTCUSD hit and found cloud support, also known as Kumo.

The blue conversion line is above the brown colored baseline, indicating that the market is still bullish, but consolidating. A bullish market would see the price of Bitcoin trading above both lines.

Touching the cloud itself is not always meaningful. However, only weekly timeframes, the re-test of the same cloud is what triggered the bull run.

The reversal of the Ichimoku cloud sparked the bull run | Source: BTCUSD on TradingView.com

Losing the cloud would be huge. This could mean that the bullish cycle is over or that an extended consolidation is ahead. The last time the weekly cloud was lost was the Black Thursday meltdown in March 2020.

Ichimoku is one of the few technical indicators that focuses on both time and price. Tapping on the cloud means it’s time to look for other signals for further confirmation.

Three potential support reversal signals can be found | Source: BTCUSD on TradingView.com

With more technical indicators activated, things get a lot more interesting. The TD Sequential Market Sync Indicator has triggered a perfected buy setup, just as Bitcoin hits the cloud.

Sunday night’s weekly close could very well stay close to current levels to end with a doji. The reaction of the bulls the following week would be telling.

Bullish grip | Bitcoin’s Hidden Trendline That Could Save The Bull Run

A green candle above $ 47,000 would cross a local downtrend line and bring into play a Japanese Morning Star candlestick pattern. It should be noted, however, that the latest potential weekly Morning Star pattern failed. But such signals are confirmed only with hindsight.

At the same time, the weekly stochastic is showing a bullish divergence. A bullish cross is also approaching a reading that has historically set up larger lows than that.

What to expect this weekend before the weekly BTCUSD close

A doji candle signals indecision and comes at the end of a trend, or a pause before continuation. Fear in the market has left bulls weak and bulls salivating, but none have been able to make a major difference in the past five days.

The weekend forecast suggests more of the same level, with the bulls expected to defend $ 42,000 and under. Fear will likely keep the bulls at bay until after the weekly close, when confidence returns and there is a possibility of a reversal of the Morning Star.

Bearish catch | Bitcoin Death Cross 2022: What you need to know about the lethal signal

If the doji candle hinted at a continuation instead of a reversal, the next logical target would be the bottom of the Ichimoku cloud at around $ 37,000.

The danger of more inconvenience than this always exists. The price of Bitcoin has just had a daily death cross that could have doomsday implications. The complete loss of the Ichimoku Cloud could indicate that the bullish cycle is over for now. Winning back the cloud would be the first sign that the running of the bulls is back.

Whatever you do, watch the clouds carefully over the weekend.

. @ elliottwaveintl graciously offered my subscribers FREE access (normally $ 99) to the December video issue of Robert Prechter’s Elliott Wave Theorist. It includes 28 charts referring to “A Stock Market High for the Ages”. Enter the code “TONYBTC” for FREE access: https://t.co/Ke1bCmpzet pic.twitter.com/tYMRvsotND

– Tony “The Bull” Spilotro (@tonyspilotroBTC) January 14, 2022

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market information and technical analysis training. Note: The content is educational and should not be taken as investment advice.

Featured image from iStockPhoto, charts from TradingView.com

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