Bitcoin Approaches Cloud Resistance Near $85K

Bitcoin’s price action has traders watching closely as the leading cryptocurrency once again tests a crucial resistance zone—the lower boundary of the Ichimoku Cloud, currently around $85,000. According to CoinDesk analyst and Chartered Market Technician Omkar Godbole, this level has repeatedly acted as a strong supply zone since February.

While Bitcoin’s momentum remains constructive in the short term, the risk-reward ratio for new long positions becomes less favorable near this resistance level.

What is the Ichimoku Cloud?

The Ichimoku Cloud is a Japanese-developed technical analysis tool that visualizes potential support and resistance, as well as market momentum. It includes five components:

• Leading Span A & B – which form the Cloud itself
• Conversion Line (Tenkan-Sen)
• Base Line (Kijun-Sen)
• Lagging Span (Chikou)

Prices above the cloud indicate a bullish market, while below implies bearish sentiment. Bitcoin has traded below the cloud since February, and each retest of the cloud’s lower edge has led to sharp rejections.

A Familiar Rejection Pattern Emerges

This current setup is not new. A failed breakout on April 2 from the $85K resistance led to a steep correction, pushing Bitcoin to below $75K. The pattern closely mirrored the February 21 rejection, when BTC also pulled back significantly after testing the cloud.

Now that Bitcoin is again near the $85K cloud boundary, traders must be wary of a potential repetition of that rejection pattern.

Risk-Reward Not in Bullish Favor

For bullish traders, the reward may not justify the risk:

• Immediate resistance at $85K
• Support zone at $75K—nearly $10K lower
• This creates a narrow upside with significant downside risk

Unless Bitcoin breaks above $90K, confirming a cloud breakout, the broader bull run may stay on pause.

What Would Signal a Bullish Breakout?

A confirmed breakout above $90,000 would represent a clean move beyond the cloud. This would invalidate the resistance thesis and potentially launch a new leg in Bitcoin’s bull market—possibly retesting or surpassing its January all-time high of $109,000.

According to Omkar Godbole, only then would traders have the technical green light to enter long positions with a more favorable risk-reward setup.