As noted by popular cryptocurrency trader Josh Olszewicz, Bitcoin is back above the daily Ichimoku cloud, which could be interpreted as a positive signal for the bulls.
However, the cloud itself remains in the bearish territory while the Tenkan-Kijun also could point to further downside.
Moreover, Olszewicz explained that the previous Kumo breakouts that took place this year did not go anywhere. The term "Kumo," of course, refers to the cloud that is located between Span A and B.
"Although this is certainly a more bullish picture than a few days ago, Cloud does not yet give its assurance of bullish continuation yet, that would take a bullish Cloud and Bullish TK cross," the trader said in a recent post.
A bullish breakout on the two-day cloud and a bullish TK cross would be enough for bullish continuation, according to Olszewicz.
Alex DovbnyaAt press time, Bitcoin is trading at $61,986 after gaining 2.9% over the last 24 hours. The bulls gained a lot of ground following the Fed's surprisingly big rate cut that caught many analysts off-guard. However, it remains to be seen whether the bulls will manage to sustain their momentum this time around.
September typically tends to be the worst-performing month for Bitcoin with average returns of -4.5%. On Sept. 6, the cryptocurrency plunged to as low as $52,542. However, this September is now shaping out to be a positive month for Bitcoin, bucking the overall trend.
The fourth quarter of the year is shaping up to be promising for Bitcoin due to the improving macro environment. The largest cryptocurrency tends to outperform during October and November.
Fundstrat's Tom Lee has repeatedly stated that he sees Bitcoin hitting $150,000 by the end of the year.
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