Bitcoin's breakout from the"Ichimoku Cloud" might result in a continued uptrend

March 3, 2022

According to Fairlead Strategies, Bitcoin appears to have turned the corner and may continue to gain ground in the short term, citing a widely tracked technical tool termed as

Ichimoku Cloud

The Ichimoku cloud comprises 2 lines which was created by Japanese journalist Goichi Hosoda. Both lines are plotted 26 days ahead of the last candle to indicate future support or resistance.

Leading span A & B

To plot these lines, the indicator employs a pretty complex calculation. Users don't need to understand the inner workings and may instead focus on analysing the signals provided by the indicator.

When the leading span A crosses above the leading span B, the cloud turns green, indicating a bullish bias. When the leading span B falls below the leading span A, the cloud colour changes to red.

Latest breakout!

The latest breakout is backed by an above zero or bullish reading on the MACD histogram.

“Bitcoin has passed resistance outlined by the daily cloud, and it is likely to confirm its breakout upon today’s close.” -Katie Stockton