NounsDAO on the Brink of Treasury Division Split Amidst 'Rage Quit' Uprising by NFT Holders
MicroStrategy's Significant Bitcoin Impairment Losses May Mislead: Berenberg
Binance Supercharges Bitcoin and Ether Trading in Argentine, Brazilian, and South African Currencies with Exciting Fee Promotion
Bitcoin (BTC) has experienced a remarkable surge of 85% during the initial six months of 2023, surpassing traditional high-risk assets by a considerable margin. However, despite this impressive performance, Fairlead Strategies, a technical analysis research provider, maintains a neutral long-term stance on the world's largest cryptocurrency based on market value.
The long-term outlook will turn bullish for Per Fairlead once prices surpass the resistance level of the "Ichimoku cloud" at $31,900 and the move is confirmed by momentum indicators such as the MACD histogram.
"We remain long-term neutral on bitcoin, but a breakout above the weekly cloud and a monthly MACD 'buy' signal would dictate a bullish bias," analysts at Fairlead Strategies said in a note to clients on Monday.
The Ichimoku cloud, developed by Japanese journalist Goichi Hosoda in the late 1960s, is a popular tool among traders and analysts for determining support and resistance levels, as well as identifying momentum and trend direction. Consisting of two lines known as the leading span A and leading span B, the cloud is formed by the space between these lines. Traders often interpret crossovers above or below the cloud as indications of a bullish or bearish trend change.
The MACD histogram is a popular indicator that utilizes moving averages to assess the strength of a trend and its potential changes. When the histogram crosses above the zero line, it indicates a bullish momentum shift, while crossovers below zero indicate a bearish sentiment.
BTC is yet to cross into bullish territory above the Ichimoku cloud on the weekly chart. (TradingView)
The weekly chart (shown above on the left) indicates that bitcoin is poised to surpass last week's impressive 15.5% surge, which marks its largest increase since March.
Currently, the cryptocurrency is being traded at $30,700, while the cloud resistance is situated around $31,900.
Fairlead suggests that there is potential for a breakout above the cloud resistance, supported by the positive reading on the weekly chart MACD and the recent upturn in the stochastic indicator.
The bullish signal is still pending on the monthly chart MACD.
