Tomorrow is the last day of July, and Bitcoin is at a critical moment in its life cycle.A crossroad Possible bear market Or continue to be bullish, the chosen path will determine the trend in the coming months or years.
The monthly schedule can provide clues as to what might happen next, we have five super bullish technical charts and reasons why Bitcoin is more likely to take off from here rather than fall further.
The key monthly closing price may determine the crossroads of the crypto cycle
Bitcoin returns to around $40,000 After a long delay and a sharp drop to $30,000. Every scan below the support level is bought, but the resistance above has not yet broken.
The reason for the stalemate between the two levels is because the price behavior in the monthly time frame is trapped in Tianguanxian and Ji Chunxian. The last time a bear market kicked off because of the loss of this level. The monthly candlestick also remained at the support level, which was something that failed to happen at the beginning of 2018.
The Ichimoku is currently bullish on the top cryptocurrency | Source: BTCUSD on TradingView.com
The two smaller candles in June and July are structurally similar to the pair of candles that set the bottom of the bear market at around $3,000 and have never been broken.
The Japanese candlestick pattern is also forming, just as Bitcoin price rubs shoulders with a long-term parabolic curve. A similar-scale rise from the bottom of 2018 may be similar to the measurement target here.
Candle structure matches the bear market bottom | Source: BTCUSD on TradingView.com
Although the figure below shows TD sequence indicator When counting in red 2, this indicates that any downtrend is at an early stage (compared to past counts). But what is good for the bulls is that support has fallen back to where it had broken the TD 9 count at a high level.
Support is holding where the trend became interesting | Source: BTCUSD on TradingView.com
According to the technical staff, the Bitcoin bull market may be brewing
The bullish signals in the monthly time frame don’t stop there.Bitcoin prices have more signs of a bull market Not finished.
The next signal comes from Relative Strength Index, Which shows that although Bitcoin quickly overheated in the last impulse, compared with the last rally, the bull market will hardly be a whimper.
RSI 支撑保持不变 | 来源： TradingView.com 上的 BTCUSD
The RSI remained at the level that prompted the last major bull market in 2017 and started to recover. If the same reading is obtained from the support point during the last bull market, the RSI indicates that the bulls have more room to run this cycle.
Finally, there is LMACD, which barely got rid of the bearish crossover.
There's no bearish crossover... yet | Source: BTCUSD on TradingView.com
LMACD is a logarithmic version of the moving average convergence divergence indicator, which is more suitable for use with Bitcoin. Past bear market crosses within the monthly time frame have led to an expansion of the downtrend, and a narrow crossover at the end of 2020 has resulted in Bitcoin charges reaching $60,000 per coin.
The combination of all the charts shows that any bearish action in the lower time frame is nothing more than an epic shock. However, only time will tell, and there are more than 24 hours before the dramatic close of the apparently critical monthly candlestick chart.
Featured image from iStockPhoto, Charts from TradingView.com