Bitcoin Bounced Off The Cloud Support, Faces Resistance At $42K

Bitcoin bounced off the cloud support which often acts as support during recent market swoons and it is now facing resistance at $42K so let’s find out more in today’s latest Bitcoin news.

Bitcoin defended critical price support on Monday and avoided a major technical breakdown that could have invited the bears. According to a popular technical analysis, the Ichimoku cloud showed weekly support for BTC near $37,600 and the leading crypto overnight tumbled to the level before stabilizing once again. Bitcoin bounced off the cloud support and hit $39,000.

The charts show that the cloud often acted as a support in the recent weeks and as such, the breakdown could have invited bigger selling pressure. While Bitcoin avoided the bearish scenario, the crypto remains below the resistance of $42,600 which was defined by the past week’s high. The long upper wick attached to the weekly candles implies that the bull failure between $42,600 to $45,900 was more convincing for a move into the resistance cone which is now needed again to confirm a bull revival.

The Ichimoku cloud was created by Japanese journalist Goichi Hosoda back in the 1960s which includes two lines, green and red one and both of them are plotted 26 days ahead of the last candle that indicates future support or resistance.

Also, Bitcoin slumped to a weekly low briefly below $38,000 but despite the price dips, then reclaimed the lost ground and returned to a familiar level of around $39,000. the altcoins are in the red today with a few exceptions like Terra. In the middle of last week, Bitcoin launched a leg up after Biden’s executive order on crypto regulations which led to a surge of $43,000. however, the trip on the north was short-lived and the bears came back to the scene.

In the following hours, BTC Lost about $3000 and dropped to $39,000 but since then, the asset remained stuck near the line with only a few price pumps and dumps. The latest example came a few hours ago when the primary cryptocurrency dropped by $1500 to the lowest point since March 7 which was set at $37,500. it bounced off and now stands around $39,000 once again with Tesla’s CEO saying that he has no plans to dispose of his holdings in BTC, ETH, and DOGE. Bitcoin’s market cap has remained under $750 billion.