- May 18, 2023
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
Bitcoin (BTCUSD) turned its Ichimoku Cloud green again on the 1W time-frame for the first time since July 2022. However it is the first time that it goes from red to green since December 2020 and if it wasn’t for the March 2020 COVID crash, it would have been the first since November 2019!
This shows that on a cyclical basis, this is a very rare occurrence. On the previous Cycle it took place in April 2016 and it indicates that it is the major shift from bearish to bullish. Basically (if we exclude the March 2020 COVID crash which is a black swan/ huge irregularity event) when the Ichimoku turns green after the Bear Cycle’s red Cloud, the price never breaks below it. Essentially it becomes BTC’s Support for the Bull Cycle.
We can safely argue that as soon as BTC breaks above the red Cloud, it now has a floor to work with as a Support and traders can plan their buys accordingly, as close to the green Cloud as possible.
But what do you think? Do we have our new Support for this Cycle? Feel free to let us know in the comments section below!