Five bullish monthly charts suggesting Bitcoin is about to explode

Tomorrow is the last day of July and Bitcoin is at a crucial moment in its lifespan. The crossroads of a possible bear market or bullish continuation is here, and the path chosen will dictate the trend for potential months or years.

The monthly timeframe could give clues as to what might come next, and we have five ultra-bullish technical charts and reasons why Bitcoin is likely to rise rather than fall further.

Critical month-end closing could determine the crossroads of the crypto cycle

Bitcoin is back to around $ 40,000 after a protracted and dramatic drop to $ 30,000. Any swing below the support level has been bought up, but resistance above it has yet to be cracked as well.

The reason for the stalemate between the two levels is that the price movement is trapped on monthly time frames between the Tenkan-sen and the Kijun-sen. The last bear market was triggered by the loss of this level. The monthly candle also holds support, which was not the case in early 2018.

The Ichimoku is currently bullish on the top cryptocurrency | Source: BTCUSD on TradingView.com

The two smaller body candles of June and July appear similar in structure to the pair that bottomed the bear market at around $ 3,000 and has never been broken.

Related reading | Ready to Run: Bitcoin forms the top performing bull market floor pattern

The Japanese candlestick pattern is also forming as Bitcoin price hits a long-term parabolic curve. A similarly large upward movement from the bottom in 2018 could be similar to the measured target from here.

Bitcoin candlesticks parabolic curve

Candle structure corresponds to the lowest level of the bear market | Source: BTCUSD on TradingView.com

Although the graph below shows the sequential TD indicator at a red 2 count, suggesting that any downtrend is in its early stages (compare to previous counts, for example). But in favor of the bulls, support has fallen back where a TD 9 count was previously broken in the high timeframe.

Bitcoin TD

The support keeps where the trend got interesting | Source: BTCUSD on TradingView.com

According to technical data, the Bitcoin Bull Stampede could be brewing

The bullish signals on the monthly timeframe just don’t stop there. Bitcoin price has a lot more to it than that, suggesting that the bull run is not over yet.

The next signal comes from the Relative Strength Index, which suggests that while Bitcoin overheated very quickly during that last pulse, the bull run would hardly be a whimper compared to the last rally.

Bitcoin rsiRSI support holds | Source: BTCUSD on TradingView.com

The RSI is holding at levels that sparked the last major bull in 2017 and has started to turn up again. If the same reading is taken from the support point during the last bull market, the RSI suggests that bulls have much more headroom for this cycle.

Related reading | Bitcoin indicator forecast calls for USD 46,000, new all-time highs possible

Finally, there is the LMACD, which just barely escapes a declining crossover.

immacd

There is no bearish transition … yet | Source: BTCUSD on TradingView.com

The LMACD is the logarithmic version of the moving average convergence divergence indicator and is more suitable for use with Bitcoin. Past bear crosses on the monthly timeframe resulted in extended downtrends, while a narrow exceedance in late 2020 led Bitcoin’s fee to $ 60,000 per coin.

All of the charts taken together indicate that any bearish action on lower time frames was nothing more than a cleanup of epic proportions. Time will tell, however, and there are still more than 24 hours before the clearly critical monthly candle comes to a dramatic end.

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. The content is educational and should not be viewed as investment advice.

Featured image from iStockPhoto, charts from TradingView.com

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