A signal that flashed at the start of a historic 4,593% Bitcoin (BTC) rally is back, but this time it’s happening to the second-largest cryptocurrency by market cap, Ethereum (ETH).
A trader known in the industry as Alunaut tells 68,000 followers on Twitter that the price of ETH has crossed above the Ichimoku Cloud.
The cloud, also known as the Ichimoku Kinko Hyo, is a mashup of several indicators that identify levels of support and resistance, track momentum and spot potential trend shifts.
The same indicator flashed green for BTC in April of 2016, ahead of its long-term move from about $430 to an all-time high of $20,089.
— Alunaut 🌎 🚀 🌘 (@onemanatatime) February 21, 2020
However, in the highly volatile world of crypto, Bitcoin remains king, and the direction it takes will likely determine where the market at large is ultimately heading.
To that end, the prominent crypto analyst DonAlt warns that if BTC begins to retrace below $9,184, he’ll become “super bearish” on the market in the short term.
If Bitcoin begins a significant retracement, he identifies $7,900 as an area of support on both the weekly and monthly charts. DonAlt says he’s paying especially close attention to the monthly close of BTC.
“The absolute state of this current monthly candle. Bulls better fix this in the next 10 days.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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