Bitcoin Needs to Overcome the Cloud before Taking on the Moon

The Ichimoku cloud is a tool to help identify hidden levels of support and resistance.

During strong trends, the cloud will hold up prices in an uptrend and hold down prices in a correction.

For bitcoin, notice how the cloud held prices up right before the price collapsed.

Now, the cloud is acting like overhead resistance. Breaking above the cloud high of $45k is the first order of business in an effort to resume a bull run.

The near-term price action looks promising as RSI divergence is visible on the latest low in price. This suggests the near-term downtrend has lost its momentum and a turn north is higher probability.

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There are some constructive Elliott Wave patterns brewing. Bitcoin will need to hold above $32,000 otherwise this likely becomes a false start to the upside.