- The likelihood of bitcoin ending its 4-yr February successful streak in 2019 is substantial, as the major trend is bearish for the first time in the previous 3 many years. Even more, BTC’s failure to capitalize on a bullish sample on the 3-working day chart suggests bearish sentiment is however really powerful.
- BTC risks falling to December lows near $3,100 in the up coming number of days.
- The odds of BTC ending February in the inexperienced would increase sharply if price ranges see a powerful bounce from the crucial 200-week relocating common at $3,298.
Bitcoin could end its 4-yr February successful streak unless of course price ranges see a powerful bounce from critical help.
The leading cryptocurrency by industry capitalization gained 16, 18, 23.5 and 1.6 p.c in the next month of 2015, 2016, 2017 and 2018, respectively, according to CoinDesk’s Bitcoin Cost Index (BPI).
BTC generally posts losses in January just before putting on a very good show in February. The January shedding streak appears sure to prolong to the fifth yr running with a shut tonight in the destructive.
As of composing, BTC is changing arms at $3,414, representing a 7 p.c drop from the month-to-month opening price tag of $3,693.
- As seen earlier mentioned, BTC has posted gains in February in 5 out of the previous 7 many years.
- January was a very good month for the cryptocurrency all through the 3 yr time period of 2012–2014.
- BTC is reporting losses in January for the fifth consecutive yr.
Nonetheless, the odds of bitcoin submitting gains in February for the fifth yr straight are really reduced, as the recent drop to six-week lows has put the bears again in a commanding position.
The bearish set up, nevertheless, would weaken if the crucial 200-week relocating common help, presently at $3,298, holds ground for the next time in two months. That could produce a sustained rally to $4,000.
The earlier mentioned chart displays the 5- and 10-month MAs are trending south and BTC is trading very well beneath these averages for the first time since 2015.
Set merely, the major trend heading into February is bearish, whilst bullish ailments prevailed in the previous 3 many years. Hence, BTC might have a tricky time submitting sustainable gains in the up coming 4 weeks.
3-working day chart
BTC jumped earlier mentioned $4,000 in mid-December, confirming a bullish divergence of the RSI – a powerful indicator of a bearish-to-bullish trend transform.
The abide by-by to that trend reversal, nevertheless, has been anything but bullish. Also, price ranges fell to six-week lows earlier this week.
BTC’s lack of ability to develop substantial gains irrespective of the RSI divergence suggests the bearish sentiment is however really powerful.
On the weekly chart, BTC has carved out a bearish-reduce substantial earlier mentioned $4,000, reinforcing the destructive watch put forward by the downward sloping 10-week MA.
The cryptocurrency, consequently, could before long revisit December lows near $3,100. A violation there would establish contemporary reduce reduced and open the doorways for a further drop beneath $3,000.
The likelihood of BTC submitting gains in February would increase if the 200-week MA, presently at $3,298, all over again serves as powerful help. That common experienced put brakes on the market-off in December and was adopted by a corrective bounce to levels earlier mentioned $4,000.
Disclosure: The creator holds no cryptocurrency at the time of composing.