Since the price of Bitcoin rallied to an all-time high of US$73,845 versus the US dollar (USD), the BTC/USD pairing has gradually stepped lower, confined within the limits of a descending channel, taken from US$73,845 and US$56,478.

Ichimoku Cloud Resistance in Play

As shown on the daily chart of BTC/USD, while the unit is restricted within the limits of a descending channel, you will note that price is also fading the underside of the Ichimoku Cloud, formed by the Leading Span A (light green at US$58,307) and the Leading Span B (light orange at US$60,375).

In addition to sentiment moderately favouring sellers and the Ichimoku Cloud resistance entering the fight, the Conversion Line (blue at US$57,202) crossed below the Base line (red at US$59,412) on 9 August.

Price Direction

Following the recent reaction from the Ichimoku Cloud, bears will likely be watching for price action to close below the Base line (viewed as a bearish signal) before committing. Follow-through selling from that point would likely lead the major crypto towards the lower end of the channel support and possibly toward support around US$50,570.

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