According to U.Today, Josh Olszewicz, a renowned cryptocurrency trader, has identified a Tenkan/Kijun crossover on Bitcoin's daily chart, which could potentially signal the onset of a bearish trend. The Tenkan Sen is calculated by dividing the highest high and the lowest low in price over the past nine periods. This line often acts as a short-term support level during an uptrend, suggesting that the price might find some buying interest at this point. Conversely, it can also serve as a short-term resistance level if a particular asset is in a downtrend.
The Kijun Sen, also known as the base line, is determined by adding the highest high and the lowest low over the past 27 periods and dividing this sum by two. This base line can function as a medium-term support level. The relationship between these two lines could offer crucial signals to traders about the current market condition. The Tenkan Sen crossing below the Kijun Sen is generally viewed as a bearish indicator, as it suggests that the market is yielding to bearish pressure.
However, this signal may not necessarily spell the end for the bullish trend, as the crossover occurred below the Ichimoku cloud. At the time of reporting, Bitcoin is trading at $63,645, according to data from CoinGecko. It's worth noting that Bitcoin is currently underperforming against Ethereum, which has seen a surge of approximately 6% in the last 24 hours.