- Bitcoin appears on keep track of to snap the 6-month losing streak and near February in the inexperienced for the fifth consecutive calendar year. The 10 % gain is accompanied by symptoms of bearish exhaustion on the weekly chart. As a end result, BTC may continue being bid in March.
- The limited-phrase outlook stays bullish as BTC is keeping previously mentioned $3,714 and the 5- and 10-candle going averages on the 3-day chart are trending north. Further, the triangle breakout is nevertheless valid. A solid bounce from 10-candle MA at $3,693 could generate a move towards $4,000.
- A UTC near underneath $3,714 would validate the bearish outdoors reversal candle witnessed in the 3-day chart and open up the doorways to stages underneath $3,400.
- The outlook as for each the every month chart stays bearish, as going common reports are nevertheless trending south. The bearish set up would be invalidated if and when prices very clear the resistance of the trendline slipping from December 2017 highs, at present at $5,000.
Bitcoin (BTC) appears set to conclude its report 6-month losing streak with modest gains in February.
The crypto market place chief is at present buying and selling at $3,800 on Bitstamp, representing a 10 % gain on the every month opening price tag of $3,434, in accordance to CoinDesk Bitcoin Price tag Index (BPI). Had BTC remained bid at highs previously mentioned $4,100 witnessed above the weekend, the every month gain would have been near to 20 %.
Yet, a 10 % rise – assuming prices keep at $3,800 till UTC near tomorrow – will be the first positive every month overall performance considering that July.
Price ranges dropped 9, 6, 4.4, 37, 7 and 7.5 %, respectively, in the past 6 months, the longest stretch of every month losses on report. Notably, November’s double-digit fall did the most destruction, as prices tumbled underneath the extensive-held support of $6,000, dashing hopes of a extensive-phrase bullish reversal from that amount.
The sell-off, even so, ran out of steam around $3,300 in the past two months, making it possible for BTC to put up a noteworthy bounce in a seasonally positive month of February.
Far more importantly, as we enter the last month of the first quarter, symptoms of bearish exhaustion have emerged on extended period charts, as reviewed previously this 7 days. BTC, therefore, could continue being better bid in March – a weak month for the primary cryptocurrency considering that 2014.
Every month chart
A inexperienced candle has appeared on the every month chart after 6 months. The route of least resistance, even so, is nevertheless to the downside, as indicated by the downward sloping 5- and 10-month going averages (MAs).
A crack previously mentioned the descending trendline connecting the December 2017 and November 2018 highs is desired to invalidate the bearish check out.
On the previously mentioned chart, the 50-7 days MA has dropped underneath the 100-7 days MA for the first time considering that early 2015. That extensive-phrase bearish crossover is commonly considered a lagging indicator. Further, historic facts reveals the past bear market place finished with the bear cross of the two averages.
Further, the cryptocurrency made an inverted bullish hammer past 7 days, validating the argument vendor exhaustion signaled by the extensive-phrase MA crossover.
BTC, therefore, may continue being on the offensive following month.
BTC made a bearish outdoors reversal (engulfing) candle yesterday, countering the bullish outdoors reversal made in 3 days to Feb. 8. A bullish-to-bearish reversal, even so, would be confirmed only if BTC finds acceptance underneath $3,714.
That appears not likely, as the 10-candle MA, at present positioned just underneath $3,700, is trending north and could recharge engines for a re-take a look at of $4,000.