- Bitcoin price completes the most sought-after bullish entry condition within the Ichimoku Kinko Hyo system.
- Ethereum price action avoided a major bearish breakout on Monday.
- XRP price rallied more than 10% on Monday but failed to break out of the Ichimoku Cloud
Bitcoin price closed out February with a bang on Monday, closing nearly 15% higher. Ethereum price was threatened by a massive bearish continuation setup, barely hanging on to near-term support until it rallied. XRP price teased bulls with a breakout similar to Bitcoin’s but cut short by only $0.0006.
Bitcoin price completes bullish entry that signals a renewed bullish expansion phase
Bitcoin price, on Monday, completed what Ichimoku traders and analysts have been waiting for since the beginning of 2022: an Ideal Bullish Ichimoku Breakout. The rule for this entry are as follows:
- The current close is above the Ichimoku Cloud (Senkou Span A and Senkou Span B).
- The Tenkan-Sen is above the Kijun-Sen.
- If the Tenkan-Sen is below the Kijun-Sen, then the Kijun-Sen must be flat or pointing down while the Tenkan-Sen is pointing up.
- Future Senkou Span A is above Future Senkou Span B.
- The Chikou Span is above the bodies of the candlesticks and in open space.
- Open-space is a condition where price will not intercept the body of a candlestick over the next five to ten periods.
While bulls still need to confirm the breakout by pushing Bitcoin price higher, upon confirmation, the next target for BTC is near the $59,000 value area where a high volume node in the extended 2021 Volume Profile and the 161.8% Fibonacci extension exist.
BTC/USD Daily Ichimoku Kinko Hyo Chart
Downside risks have been mitigated but remain a threat. The near-term bullish outlook will be invalidated if Bitcoin price closes at or below $37,000. In that scenario, Bitcoin would confirm a massive bull trap and initiate the inverse of the current Ichimoku entry – the Ideal Bearish Ichimoku Breakout.
