Bitcoin Exhibits Prominent Bullish Indicator, Yet Comes with a Caveat

Well-known crypto trader Josh Olszewicz has observed that Bitcoin has rallied above the Ichimoku cloud on the daily chart, which could signify a bullish trend. 

Nonetheless, the cloud is still in a downtrend setting, and the alignment of the Tenkan and Kijun lines implies potential further declines. 

Furthermore, Olszewicz notes that unlike earlier Kumo (cloud) breakouts this year that failed to yield significant moves, the current scenario might be different. The “Kumo” refers to the Ichimoku cloud space between Span A and B. 

He commented, “We’re seeing a shift towards a bullish stance as compared to some days ago, but we’re yet to receive full bullish confirmation from the Cloud or a Bullish TK crossover.”

For a bullish trend confirmation, Olszewicz suggests that a bullish breakout through the two-day cloud in conjunction with a bullish TK crossover would be required. 

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Currently, Bitcoin’s value stands at $61,986, following a 2.9% increase over the last day, spurred by the Federal Reserve’s unexpected significant rate cut that took many by surprise. Yet, it’s uncertain if this bullish trend will maintain its pace. 

Historically, September is a weak month for Bitcoin, averaging a negative return of -4.5%. On Sept. 6, the cryptocurrency declined to as low as $52,542. However, this September seems to defy the usual pattern with a positive trajectory for Bitcoin. 

The year’s final quarter looks optimistic for Bitcoin due to the steadily improving global economic outlook. Typically, Bitcoin performs well during the months of October and November. 

Tom Lee of Fundstrat has consistently predicted a $150,000 year-end price target for Bitcoin.