Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Well-known cryptocurrency trader Josh Olszewicz has spotted the Tenkan/ Kijun crossover on Bitcoin's daily chart. The bearish signal could indicate the start of a bearish trend.
In order to calculate the Tenkan Sen, the highest high and the lowest low in price have to be divided in two over the past nine periods. This line can typically serve as a short-term support level during an uptrend, meaning that the price could potentially find some buying interest there. At the same time, it can also serve as a short-term resistance level if a certain asset is in a downtrend.
Alex DovbnyaThe Kijun Sen (the base line) is calculated by adding the highest high and the lowest over over the past 27 periods and dividing this sum in two. This base line can act as a medium-term support level.
The relationship between the two aforementioned lines could provide key signals for traders about the current state of the market. The Tenkan Sen crossing below the Kijun Sen is usually treated as a bearish indicator since it indicates that the market is succumbing to bearish pressure.
However, this signal might not be the coup de grace for the bullish trend since the crossover took place below the Ichimoku cloud.
At press time, Bitcoin is currently trading at $63,645, according to data provided by CoinGecko. As reported by U.Today, the largest cryptocurrency is currently underperforming against Ethereum, which has managed to surge roughly 6% over the past 24 hours alone.
Vladislav Sopov
Tomiwabold Olajide
Dan Burgin