Ichimoku cloud indicator short-term analysis of Bitcoin for January 4, 2020

BTCUSD remains in a bearish trend. Price is below the Ichimoku cloud however we can observe bullish reversal signals in the RSI. If these signals are combined with a break above cloud resistance we could have the start of a trend reversal in BTCUSD.

As can be seen above in the Daily chart, the RSI price has not followed the price of BTCUSD to new lower lows. This is a bullish divergence. This is a warning to bears. However price remains below the Kumo (cloud) and bulls need to at least enter the cloud in order to change trend to neutral. Resistance by the cloud is at $7,480. Trend will change to bullish on a daily close above the Kumo at $8,370. The Chikou span is challenging resistance at current levels and both tenkan- and kijun-sen are below current price. In Ichimoku cloud terms things are a bit mixed but mostly bearish. Entering the cloud will be a big step towards trend reversal. So keep an eye on $8,370. If it breaks to the upside we could have a new upward move starting.The material has been provided by InstaForex Company - www.instaforex.com