Five Bullish Monthly Charts That Suggest Bitcoin Will Blast Off
July 30 2021 - 5:06PM
NEWSBTC
Tomorrow is the last day of the month of July, and Bitcoin is at a
pivotal moment in its lifetime. The crossroads of a possible bear
market or bullish continuation is here, and the path chosen will
dictate the trend for potentially months or years to come. The
monthly timeframe could provide clues as to what might be next, and
we’ve got five ultra bullish technical charts and reasons why
Bitcoin is more likely to blast off than fall further from here.
Critical Monthly Close Could Determine Crypto Cycle Crossroads
Bitcoin is back at around $40,000 after a long drawn out and
dramatic fall to $30,000. Each sweep below the support level was
bought up, but resistance above also has yet to crack. The
reason for the stalemate between the two levels, is because price
action on monthly timeframes is trapped between the Tenkan-sen and
Kijun-sen. The last bear market was kicked off by losing such
level. The monthly candle is also holding at support, which is
something that failed to happen in early 2018. The Ichimoku is
currently bullish on the top cryptocurrency | Source: BTCUSD on
TradingView.com The two smaller bodied candles from June and July
appear similar in structure as the pair that set the bear market
bottom around $3,000 and has never yet been broken. Related Reading
| Ready To Run: Bitcoin Forms Best Performing Bull Market Bottoming
Pattern The Japanese candlestick pattern is also forming just as
Bitcoin price brushes up against a long-term parabolic curve. A
similar sized move up from the 2018 bottom might resembled the
measured target from here. Candle structure matches the bear market
bottom | Source: BTCUSD on TradingView.com Although the below chart
demonstrates the TD sequential indicator at a red 2-count, which
would suggest any downtrend is in its early stages (compare to past
counts for examples). But in bulls favor, support has fallen back
to where a TD 9 count was previously broken on the high timeframe.
Support is holding where the trend became interesting | Source:
BTCUSD on TradingView.com Bitcoin Bull Stampede Could Be Brewing,
According To Technicals The bullish signals on the monthly
timeframe simply just don’t stop there. Bitcoin price has plenty
more to suggest the bull run is nowhere yet finished. The next
signal is from the Relative Strength Index, which suggests that
although Bitcoin got overheated very quickly during this last
impulse, the bull run would barely be a whimper compared to the
last rally. RSI support is holding | Source: BTCUSD on
TradingView.com The RSI is holding at a level that prompted that
last major bull market of 2017, and has begun to turn back higher.
If the same reading is taken from the point of support during the
last bull market, the RSI suggests there’s a lot more room for
bulls to run this cycle. Related Reading | Bitcoin Indicator
Forecast Calls For $46K, New All-Time Highs Possible Finally,
there’s the LMACD, which is narrowly escaping a bearish crossover.
There's no bearish crossover... yet | Source: BTCUSD on
TradingView.com The LMACD is the logarithmic version of the moving
average convergence divergence indicator, and is better suited for
use with Bitcoin. Past bear crosses on the monthly timeframe led to
extended downtrends, while narrowly crossing in late 2020 led
Bitcoin’s charge to $60,000 per coin. All of the charts combined
suggest that any bearish action on lower timeframes, was nothing
more than a shakeout of epic proportions. However, only time will
tell, and there is still more than 24 hours left before the clearly
critical monthly candle comes to a dramatic close. Follow
@TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram.
Content is educational and should not be considered
investment advice. Featured image from iStockPhoto, Charts from
TradingView.com
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