Ding ding ding! New all-time highs yet again for Bitoin as it tagged the 63,788 level. I’ve written and talked recently about the 62000 value area being an important one to watch as it would put Bitcoin’s daily Ichimomku chart into a very bullish position. In the Ichimoku system, there is a popular strategy known as the Ideal Bullish Breakout strategy. The following are the necessary conditions that must be attained for an ideal Bullish Breakout strategy:
1.Tenkan-Sen above the Kijun-Sen.
2.Span A above Span B.
3.Price trading above the Kumo.
4.Lagging Span above the candlesticks.
All of the conditions above are present on Bitcoin’s daily chart. But I would watch out for some selling pressure near the 66k area because this will be a retest of the prior rising wedge pattern.
Cardano is currently on track to complete a fourth consecutive day of the daily close above the daily open. Cardano’s current intraday high of 1.4450 is the highest price level Cardano has traded since March 18th, 2021. This move higher occurs right as the Tenkan-Sen has crossed above the Kijun-Sen, as well as the Future Span A sloping higher. The tight trading range for Cardano continues and we may not see a definite and clear move higher until we see a close above the all-time high of 1.5467. Volume is increasing and we should watch for any major spike higher – especially outside of traditional market trading hours.
Binance Coin (BNB)
This is annoying, but I can’t remember if I wrote about this current resistance zone for BNB or if I did a live stream of it – regardless, I reviewed BNB not very long ago and indicated that the shaded area above between 600 and 750 is a likely stopping point for BNB. Why? Purely technical reasons – but now there are some fundamental reasons. Binance CEO Changpeng Zhao (CZ for short) announced via twitter the next ‘burn’ of BNB tokens was coming soon. This drove new speculators into an already parabolic move. Here’s the issue though: Most of the new participants who have bought BNB have bought on the expectation that BNBs value will rise when the burn occurs – but the rise has already occurred. In the stock market, this is called news that is ‘priced in’. It’s the definition of buy the rumor, sell the news. I expect to see BNB experience a massive crash soon after the burn. I’m likely going to open some short positions soon.
Here’s another cryptocurrency and chart that I’ve reviewed recently that I can’t recall when I exactly did this analysis – but the old Buy Stop and Sell Stop trade ideas are still there. The Sell Stop option certainly did not play out and I actually got stopped out on this one for a small loss. But the Buy Stop trade idea did trigger and it was nice to see the breakout occur with an actual retest of the break to confirm the new move higher. There regression channel from the February 28th (red and blue channel) low is interesting. Notice how the bottom of the channel has been a stopping point for higher prices. Watch closely if Dash moves back into that channel because we could see a spike towards 450 in no time at all.