- Bitcoin struggles at the Ichimoku Cloud, facing resistance that limits its upside potential despite strong trader activity.
- Open interest surges to $27.9B, reflecting increased market participation and signaling potential volatility ahead.
- A breakout above the Ichimoku Cloud could spark a rally, while rejection may lead to another pullback.
According to analyst Washigorira, Bitcoin hovers between $62,000 and $64,000 on the hourly chart. The Ichimoku Cloud is a strong resistance level, compelling short-term action. Bitcoin attempted to break above the resistance but was met with rejection, resulting in consolidation. Meanwhile, open interest has hit $27.9 billion, demonstrating high trader activity.
Bitcoin Battles Ichimoku Resistance
The Ichimoku Cloud displays changes in the price of Bitcoin. This area frequently produces choppy oscillations, which cast doubt on the direction of the trend. The grey-shaded cloud serves as a barrier of resistance, keeping Bitcoin from continuing to rise.
The Tenkan-sen line indicator is currently tested by Bitcoin. The Kijun-sen is the next level of support if the price drops below it. Additionally, the Chikou Span remains below the price, suggesting a slightly bearish sentiment. Past rejections at the cloud’s boundary support this resistance.
Bitcoin’s price movement near the cloud’s edge indicates a potential turning point. A successful breakout above the cloud could drive a strong rally. Conversely, rejection at this level may trigger another pullback.
Open Interest Sees a Sharp Increase
In addition to price movement, open interest has sharply increased. It has increased by 13% from recent lows to stand at $27.9 billion now. This increase is consistent with Bitcoin’s recent price rebound, suggesting that market activity has resumed. Stronger price swings are typically preceded by increased open interest.
Price volatility in late February and early March was accompanied by changes in open interest. Around February 22 and March 2, there were sharp drops, indicating liquidation events. The most recent uptick points to a fresh optimistic drive.
