Traders Bitcoin’s recent breakout through the Ichimoku cloud, an important technical indicator, has many calling for a rally to $100,000. This bullish breakout, first pointed out by CoinDesk’s Omkar Godbole two weeks ago, marks a big change in the momentum of the market. The digital asset has famously rocketed into the six-figure territory every time it has decisively broken this resistance line.
One of the most widely used, all-encompassing technical analysis tools is the Ichimoku cloud, which was created by a Japanese journalist in the 1960s. Our system is made up of five main components. These are known as Leading Span A, Leading Span B, the Conversion Line (Tenkan-Sen), the Base Line (Kijun-Sen), and a lagging closing price line. The area between Leading Span A and Leading Span B creates the actual cloud.
Traders use the Ichimoku cloud to spot possible areas of support and resistance. Additionally, it serves to measure momentum and identify reversal points in the trend of price action. When price clears the cloud, that’s generally good news — bullish — and when price drops below it, that’s bearish.
At the same time, Dogecoin (DOGE) is just a hair’s breadth from its own bear market trendline. Godbole… If bulls are able to break this trendline, they may next check $3.02 resistance as a test of strength. This level is just above the lower high that was put in on Mar. 2. This altcoin movement indicates a renewed altcoin momentum, hewing closely to Bitcoin’s bullish path.
Markets expert Omkar Godbole, Co-Managing Editor on CoinDesk’s Markets team, brings you the bullish and bearish signals shaping crypto today. Godbole earned her master’s degree in Finance and is a member of the Chartered Market Technician (CMT) association. He shares market-moving news and updates technical indicators. His breakdown of why Bitcoin broke out, and why Dogecoin could be on the verge of a similar breakout gives traders invaluable insight.
