In markets, it is often half of the battle to ensure the best entry point, as timing and level significantly affect success by leaning risk-rewarding conditions in favor of it.
While BTC’s (BTC) in the short term prospects may seem constructive with increased demand for bullish bets in the option market, Cryptocurrency’s proximity to key resistance that limited upheld in recent months means the risk-rewarding profile for those who want to take advantage of the bullish views are less favorable.
Since Saturday, the BTC has been pushing towards the lower limit of the Ichimoku cloud of about $ 85K. Ichimoku Cloud was developed by a Japanese journalist in the 1960s and is a technical analysis indicator that offers a comprehensive overview of the Market Momentum, support and resistance levels.
The indicator includes five lines: Leading Span A, Leading Span B, Conversion Line or Tenkan-sen (T), Baseline or Kijun-sen (K) and a hanging closure price line.
The difference between leading Span A and B forms the Ichimoku cloud with its upper and lower boundaries, which serves as potential support and resistance levels based on the position of the price relative to the cloud. When prices are over the cloud, it indicates a bullish trend while prices below suggest a bearish trend.
In early February, BTC fell below $ 100,000 and traded under the Ichimoku cloud. Since then, the lower boundary of the cloud has served as a strong resistance and supply zone, which limits recovery volumes.
Since BTC is trading near this level again, Bulls, especially those who want to hit the market with fresh bids, may be careful as the immediate upside may be limited by Sky resistance around $ 85K, while support is below $ 75K, that’s almost $ 10,000 lower from the ongoing market rate. The situation corresponds to an unfavorable risk salary for a long time.
The rejection of the Ichimoku cloud on April 2 resulted in a significant sale in which he pushed BTC under $ 75K, mirroring a similar pattern that followed on February 21 rejection.
Thus, the latest interaction with cloud resistance guarantees close monitoring for the potential return on sales pressure. A downturn from this level of resistance would switch attention back to the $ 75K mark.
On the contrary, a potential move beyond $ 90,000, marking a breakout of the cloud, would signal a resumption of the wider bull race and a rally to detect heights.
