The Bitcoin Party May Soon End
For the umpteenth time in a few weeks, Bitcoin (BTC) bulls have managed to wrestle bears out of the ring. The asset has moved back up to $8,150, and looks poised to head higher.
But as Josh Olszewicz of Brave New Coin recently pointed out, an indicator may be signaling that Bitcoin is poised for a pullback. In a recent tweet, Olszewicz pointed out that the Kijun band of the Ichimoku Cloud, a series of technical indicators coagulated to determine trends, key levels, and reversal levels, is now 30% away from price levels. The last time such a delta was seen, BTC spiked. The thing is, that’s when the price was 30% under the Kijun band.
So if history is of any indication and if the analysis of the Cloud works for overbought and oversold assets, BTC could soon shoot lower, falling closer to the Kijun band. But, there might be some hope, as 2017 saw Bitcoin trade over 30% above its Kijun band for weeks on end, giving BTC the chance to run further from here before a potential drawdown.
1D $BTC the last time price was this far away from Kijun (~30%)? Dec 15th, aka the bottom before that? feb 6th