A recent analysis by prominent crypto trader Josh Olszewicz, known on X as @CarpeNoctom, suggests that Bitcoin (BTC) might see a drop to the $36,000 range. His bearish case is based on the daily Kijun line.
Furthermore, he advises that setting a stop loss on long positions around $42,800 might be prudent.
Understanding the Kijun line
The Kijun line, a key component of the Ichimoku Cloud trading system, represents one of the primary indicators used by traders to gauge potential price movements.
It is often considered the baseline or standard line, calculated over the last 26 periods and providing a median price over that duration.
A dip below the Kijun line can be interpreted as a bearish signal.
The green cloud indicates a bullish phase with potential support levels should the price of Bitcoin decline. The fact that the price action is above the cloud suggests that the overall trend is upwards.
If the price were to enter the cloud, it might suggest uncertainty or a possible change in trend, and if it were to break below the cloud, it could be considered a bearish signal.
The crypto market remains in limbo
Over the past 24 hours, the cryptocurrency market has witnessed Bitcoin consolidating its position, with minor fluctuations indicating a period of stability after recent gains, according to CoinGecko.
Ethereum has mirrored this steadiness, maintaining a similar percentage change.
Binance Coin and Ripple-affiliated XRP have also experienced slight increases together with other major altcoins.