Bitcoin Closes Month in Green – Can Uptrend Continue?
Bitcoin Closes, The month of February was difficult for Bitcoin, but the digital asset came out on top in the end. After three months of consecutive red closes, BTC/USD has finally recorded its first green month. This is due to the rally that started at the end of the month. However, this is not the first time that the digital asset has shown such a trend, and past performance speaks to what can be expected from cryptocurrency in the future. For Bitcoin, the first green month has come to an end.
Bitcoin has consistently closed in the red in the three months since its peak in November. It struggled in this pattern until a late-February rally broke, allowing it to close in the green once more. After three red closes, this is the first green close. It is significant in light of previous trends triggered by occurrences like this one.
After three red closes, the most recent one-month green close occurred in July 2021. Remember that in July of last year, Bitcoin had reached a peak and was heading into three months of fluctuating prices. However, following the support of the 1 week MA50 and the formation of the July one-month green candle, the price of the digital asset had rallied to a new high.
Bitcoin Closes, Another example was the one-month green candle that formed in June 2015 after three consecutive red months. What had followed was essentially the bottom of the 2014-2015 bear market and the start of the next bull market. The same was true for the one-month green candles that formed after consecutive red months in February 2019 and December 2011.
Based on previous performance, this could indicate that the digital asset is preparing for another bull run. It would be especially convincing given that Bitcoin’s price remains above the 50-day moving average.
Daily Technical Levels
Support Resistance
39070 45766
34938 48330
32374 52462
Pivot Point: 41634
Bitcoin Closes, BTC/USD Technical Analysis
The ever-changing trends in Bitcoin are constant. As a result, a green candle after three or more consecutive red months has not always indicated a bullish future for the digital asset. It has occasionally meant the exact opposite, being the catalyst that finally pushes BTC back into another bear trend.
This was the case with the one-month green candle that formed in October 2019 after three red months. Following this, the price of the digital asset fell to a new low as the 1 week 50 MA failed to hold as it had done previously. The same thing happened in November 2014, when the asset fell to a new low after failing to hold the 1W 50 MA support. This happened again in May 2014, reaching a new low.
The failure of Bitcoin to hold above the 1W 50 MA has been a recurring occurrence in all of this. This means that in order for Bitcoin to begin a bull rally, the price must remain above the 1W 50 MA. Failure to do so risks sending the market to new lows, which at this point would be a drop below the $30,000 level.
