Technical History on the Bitcoin Monthly chart
Reflecting on the history of Bitcoin, I've observed that there have only been a few instances when the price dipped below the 55 exponential moving average (EMA) on the monthly timeframe. I remember back in January 2015, there was a tiny wick below the 55 EMA. Then, in January 2019, we experienced our first candle close below it. Fast forward to July 2022, and we began to see several consecutive monthly closes below the 55 EMA, even before the FTX collapse.
After months of anticipation, I've noticed that Bitcoin has finally pushed above the 55 EMA for the first time in several months. This followed a whole month of consolidation right below it. Additionally, Bitcoin has managed to push above the 21 EMA, after falling below it in April 2022 – almost exactly a year ago when we lost that crucial moving average.
As I dug deeper into the data, I noticed that in December, the monthly RSI (Relative Strength Index) was essentially at its lowest point ever. From a technical perspective, this implies that since the rebound, we've started to see some hidden bullish divergence forming.
I've maintained a bullish outlook on crypto since December, and everything I'm seeing now only strengthens my case. While I still believe that we may experience a decent pullback in the coming month, I remain optimistic that the overall trend will continue to be bullish. The only caveat would be if Bitcoin loses the 21 EMA, as it would signify an extremely bearish scenario if we were to close a monthly candle below the 55 EMA. Currently, the 55 EMA stands at around $23,300 or so.
Closing below the 55EMA would be worst case scenario for Bitcoin bulls for the time being.
After months of anticipation, I've noticed that Bitcoin has finally pushed above the 55 EMA for the first time in several months. This followed a whole month of consolidation right below it. Additionally, Bitcoin has managed to push above the 21 EMA, after falling below it in April 2022 – almost exactly a year ago when we lost that crucial moving average.
As I dug deeper into the data, I noticed that in December, the monthly RSI (Relative Strength Index) was essentially at its lowest point ever. From a technical perspective, this implies that since the rebound, we've started to see some hidden bullish divergence forming.
I've maintained a bullish outlook on crypto since December, and everything I'm seeing now only strengthens my case. While I still believe that we may experience a decent pullback in the coming month, I remain optimistic that the overall trend will continue to be bullish. The only caveat would be if Bitcoin loses the 21 EMA, as it would signify an extremely bearish scenario if we were to close a monthly candle below the 55 EMA. Currently, the 55 EMA stands at around $23,300 or so.
Closing below the 55EMA would be worst case scenario for Bitcoin bulls for the time being.
CE - BitDoctor
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CE - BitDoctor
Access our private indicators and join our Premium Room: bitdoctor.org
Beware of scams - I'll never DM you asking for funds.
Access our private indicators and join our Premium Room: bitdoctor.org
Beware of scams - I'll never DM you asking for funds.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.