Bitcoin Price Analysis – 5th March 2021

Roadmaps for future market movements can be found on high timeframes using Exponential Moving Averages, Volume Profile Visible Range, Pivot Points, Ichimoku Cloud, and divergences. Further background information on the technical analysis discussed below can be found here.

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On the BTC/USD daily chart, the 50-day and 200-day Exponential Moving Averages (EMAs) have been bullishly crossed since late May 2020. Both the 50-day EMA, at US$43,300, and 200-day EMA, at US$27,800, should now act as support. Significant volume support, based on VPVR (horizontal bars), sits below US$10,000, with minimal volume support above this level.

Turning to the Ichimoku Cloud, four metrics are used to indicate if a trend exists; the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan (T) and Kijun (K) cross, and the Lagging Span. The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa.

Daily Cloud metrics, with doubled settings (20/60/120/30) for more accurate signals, are currently bullish; the spot price is above the Cloud, the Cloud is bullish, the TK cross is bullish, and the Lagging Span is above Cloud and above price. The trend will remain bullish as long as the spot price is above the Cloud, currently at US$33,000.

On the four-hour Cloud, metrics have flipped bearish. Based on intra-trend data, a bullish flip in Cloud metrics should be seen as a sufficient long entry signal. Other high timeframe trend indicators, including the Williams Alligator, also suggest current price action sits in a period of consolidation, with no discernible bullish or bearish bias.