Bitcoin [BTC] Monthly Close Bullish above Resistance at $6400 – Time to Moon?


bitcoin time to moon
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Bitcoin [BTC] Monthly Close Bullish above Resistance at $6400 – Time to Moon?

Bitcoin [BTC] monthly close for March 2019 was above the resistance the long-term resistance at $$6425.  Despite the bearish threat due to the Coronavirus sell-off, the price bounces above 64% from lows at $3850.

According to prominent traders, Cred, while it is a positive signal, it is no reason to FOMO into buying. He tweeted,

…The close simply sets a bias for the next candlestick. A lot can happen in a month. If April is going to be bullish, that strength will form on weekly & daily charts as well…

bitcoin monthly close
BTC/USD Monthly Chart on Coinbase (TradingView)

Daily and Weekly Resistances

On the weekly and daily charts, Bitcoin [BTC] needs to break above swing highs around $6800-$7000 and $8,200 for confirmation of bullish bias towards 2019 highs. Prominent trader and analyst, alias, Immortal Technique tweeted,

Monthy candle closed above 6.4k, that doesn’t mean we’re going to hit 20k tomorrow, but overall it’s good, at least for me. On the other hand, I think we will see some downside the next week to take the lows around 5.6k

btcusd daily chart
BTC/USD 1-Day Chart on Bitstamp (TradingView)

A break below $5,600 would also trigger lower lows on the daily chart. This would potentially open the possibility of hitting support at $4,500 and $3,800. Leading derivatives and crypto trader, Tone Vays is bullish, now that capitulation before halving has already taken place, he notes,

The halving is coming, and the capitulation has taken place. He added,

This is the last year you’ll get a chance to buy Bitcoin in five figures. I believe next year, we’ll spend the majority of the year above $10,000, and in 2022 will start to break 20,000.

Is the Bottom in?

 

Furthermore, on whether or not the markets as hit bottom, the monthly close and spot buying interest seem to give a thumbs up. However, the bearish fears/sentiments due to correlation with stock markets and the economic slow-down remain intact.

Nevertheless, Bitcoin’s performance above the lows has not been influenced without the need for Government or Central intervention.

Currently, the derivatives market has a weak influence on the price, than it did just after the crash last month. The trading volumes and Open Interest is down more than 50% from the previous levels. Crypto trading analyst, Cantering Clark advises on keeping a tab on the order-books. He notes,

Quite an incredible change in activity and contract sizes since the cliff dive. Now given the absence I would be less prone to fade anything of substantial size hitting the tape

bitcoin bitmex strength
BitMex Derivatives Order-Book Strength (Source: Twitter)

Ideally, it should point at a gradual increase upwards building on the bullish sentiments. Nevertheless, the price remains close to the support with strong bearish possibilities.

Do you think that Bitcoin will go bullish into halving? Please share your views with us. 

Author: Nivesh Rustgi
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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Nivesh Rustgi 1180 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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