A storm month in April is now in the past, and although the forecast for Bitcoin there looked bleak for a while, bulls are breaking through the clouds and another bullish impulse could bloom higher.
Here’s a closer look at the technical indicator that suggests that the top crypto is back in bull mode after a few rainy days. We will also find out for sure whether the phrase “April showers bring May flowers” is true.
Will a stormy April bring a bountiful May for Bitcoin?
The phrase “April showers bring May flowers” comes from a proverb that was first recorded in 1886 and goes in full: “March winds and April showers bring May flowers”.
For Bitcoin, a March storm brought the cryptocurrency to all-time highs, but April turned cloudy – a month historically known for its rain showers.
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However, bad weather in early spring irrigates the soil on which new life grows. Could the same idea apply to the bull market? After a month of indecision about closing April, the clouds are starting to separate and it could bring back brighter days for Bitcoin.
Bitcoin has reclaimed the cloud and is trying to hold as support | Source: BTCUSD on TradingView.com
What the Ichimoku Indicator Says About Continuing the Crypto Bull Run
The Ichimoku indicator is a detailed technical tool that provides a look at the market. The cloud grows or shrinks with volatility and depending on which lines are crossed over the other, it can signal when the asset is bullish or bearish.
The cloud itself and the lag range marked in green behind the price movement can also indicate where support or resistance might be.
Related reading | The creator of the error-free top indicator says that despite the signal, Bitcoin is not done
The cloud, or Kumo, had supported Bitcoin in late April but eventually lost support. Only one daily candle closed outside the cloud, suggesting that a possible bear trap was successful.
After a fight, bulls pushed BTCUSD back over the cloud, which is now trying to act as support. At the same time, the resistance in the area is strong, as the arrow above the delay range shows. There was also a bearish crossover of Tenkan-sen and Kijun-sen and Kumo-Twist – both signs that sunny days are not quite there yet.
Finding support on the weekly cloud kicked off the bull run | Source: BTCUSD on TradingView.com
Keeping above the cloud is critical to another leg in Bitcoin. In weekly periods, it was the signal that triggered the latest uptrend in the first place. It is now up to the daily cloud to keep it running.
Can Bitcoin Price Movement Stay Above The Clouds And Push Higher Into The Sky?
Featured image from Pixabay, Charts from TradingView.com