Bitcoin Breaks Key Resistance, Surpasses Ichimoku Cloud, While Altcoins Lag Behind
Bitcoin (BTC) has broken through a crucial resistance level that had previously stifled its recovery rallies earlier in the year. The leading cryptocurrency surged by over 5% in just 24 hours, reaching $93,500.
BTC’s price movement has pushed it above the “Ichimoku Cloud,” signaling a shift in momentum to a bullish trend, while other major altcoins continue to lag.
Developed by a Japanese journalist in the 1960s, the Ichimoku Cloud is a technical indicator used to identify support, resistance, momentum, and potential trend changes. The cloud consists of five key lines: Leading Span A, Leading Span B, the space between them (the cloud itself), the Conversion Line (Tenkan-Sen), the Base Line (Kijun-Sen), and the lagging closing price line.
When Bitcoin moves above or below the cloud, it signals a change in market sentiment. With BTC breaking above the cloud, the outlook has shifted bullish, as illustrated in the chart below.
This breakout means the cloud will now act as support, potentially preventing any significant price pullbacks, much like it served as resistance in February and March, limiting previous recovery attempts. Additionally, BTC has reclaimed its position above the widely followed 50-, 100-, and 200-day simple moving averages (SMAs).
The focus now shifts to the $100,000 resistance level, a key psychological threshold, with the next target being Bitcoin’s record highs above $109,000. Support for BTC is found at $88,550, where the 200-day SMA and the Ichimoku cloud converge. A drop below this level would invalidate the bullish outlook.
Altcoins Trail Behind
While Bitcoin has made significant strides, major altcoins such as XRP, Dogecoin (DOGE), Cardano (ADA), Ethereum (ETH), and Solana (SOL) have yet to replicate Bitcoin’s breakout above the Ichimoku cloud. Although these altcoins have shown some resilience alongside Bitcoin’s rise, they have not yet established the same bullish momentum.
