Is $8000 on the cards for today? #24April
Very Bullish Kumo Twist flashing, $50MA broken, Ascending Triangle broken
Hey folks! Bitcoin broke out in the upside direction yesterday. We had mentioned in our previous post that if bitcoin can surpass $7150, it will target high $7000s and that is exactly what happened yesterday. Also, interesting to note that Bitcoin made this jump in price when DOW seemed to be quite stagnant in its move. Let’s see what this upward move of Bitcoin means for today.
Levels to watch out for today:
- For today, it’s pretty straightforward- as long as we can remain above $7360, we are on our way to $8000
- If we break below $7360, we might test $7100 again.
Finally BTC has broken up with Stock
To start the day, let’s speak about BTC’s decoupling from stocks as indicated by this user(for the past couple of moths Bitcoin was completely correlated to stocks). One point we need to understand today is that Bitcoin appreciated in value by more than 6% in the past 24 hours whereas DOW moved only 0.17%, a clear indication of the decoupling event.
Bye bye 50MA on the daily
At the moment it seems bulls are in control! The stage is set for the bulls in the daily chart as the price bounced from 50MA and is clearly in the path of testing 100 MA & 200MA. The mentioned MAs(100 & 200) are aligned with each other at the $8000 level. The next target for bulls will be in the region of $7950-$8000.
Ascending Triangle broken
Another argument in favor of the continuation of the bull rally is the ascending triangle theory. As mentioned by the twitter user, Bitcoin was trading inside the ascending triangle since the crash on 13th March. It broke out of it yesterday and if we can close above $7360 today then we are definitely up for some more upside. Well, to be honest, $9600 seems a bit too optimistic for now but $8000 will definitely be on the cards after we close above $7360 today.
Kumo twist providing very strong bullish signal
The following is just a brief intro on Kumo twist and Kumo breakout to get the perspective right, in-depth discussion on Kumo is out of scope for this post but if you want to learn more about it just drop a comment by clicking the link below!
Kumo Twists happen when the Senkou-Span A and the Senkou-Span B cross. This will look like a twist as the cloud switches color. A bullish Kumo Twist occurs when the Senkou-Span A crosses the Senkou-Span B from below, and vice-versa for a bearish Kumo Twist.
Generally speaking, a Kumo Twist is an early signal for a potential trend change in the future. So why are we talking about it? Read along.
Bitcoin just performed a bullish Kumo twist, the last time when the bearish Kumo twist occurred the price of Bitcoin dropped from $9500 to $4000.
A Kumo Breakout is a bullish/bearish signal that occurs when price breaks out of the cloud, depending on the direction of the breakout. This signal strength depends on the color of the future cloud and on the positioning of the Chikou Span. If the direction of the breakout is in sync with the future cloud it’s considered as a strong signal. If it’s not, it’s considered a weak signal.
A strong bullish Kumo Breakout occurs when price breaks out of the cloud to the upside whilst the future cloud is bullish and when the Chikou Span is above the cloud, and vice-versa for a strong bearish Kumo Breakout.
If you closely see the tweet below a very strong bullish Kumo breakout signal has been issued by Bitcoin on the daily chart! BTC broke out in the upside direction and the future cloud is bullish!
Although the charts are looking bullish from every aspect, we as traders need to be aware of all possible scenarios. There is a lot of extreme cross-resistance in our path to $8000 as described below -
- The top of the rising wedge is $7800.
- Then we have WMA 21 at 7800, which was the main support for the uptrend to $13500.
- We have a high volume node between $7800 — $ 8000 which is a heavy resistance zone.
Enough of trading for today, let’s move to some interesting Reddit posts to add to our reading:
AAaannnd that’s a wrap for today! Please always keep in mind that absolutely NO part of this write-up is trading advice and you should always trade at your own risk. We would continue to bring more such analyses to you every day, till then please share and subscribe to our newsletter and happy trading! Also please go through our previous posts to get the full picture. Ciao!
