Bitcoin Heads Into Historically Positive February on a Bullish Note

Bitcoin is holding its bullish development whereas heading into the traditionally sturdy month of February

The highest cryptocurrency picked up a bid under $7,000 on Jan. three and has been on an upward trajectory ever since, rising to three-month highs close to $9,570 on Thursday, in accordance with CoinDesk’s Bitcoin Value Index.

On the present value of $9,350, bitcoin is up 30 % on a month-to-date foundation – its finest January efficiency since 2013.

Moreover, the cryptocurrency is on observe to register a double-digit month-to-month achieve for the primary time since June 2019, when costs had rallied by 26 %. And January’s 30 % rally is its finest month-to-month efficiency since Might 2019.

This month’s rally marks a pointy reversal increased from a six-month downturn that noticed costs collapse from $13,880 to $6,425. With the bulls nonetheless main the worth motion, February could once more change into month for the cryptocurrency.

The favored narrative for February’s good file is that Chinese language traders are likely to liquidate their crypto holdings forward of the New 12 months holidays in January and reinvest in February, inflicting costs to rise.

This time, nevertheless, the supposed post-holiday reinvestments could also be delayed attributable to coronavirus outbreak, resulting in a weakening of the bullish momentum.

That mentioned, the bitcoin market is at present exhibiting no indicators of bull fatigue. “It is troublesome to have a bearish argument,” well-liked dealer and analyst @filbfilb tweeted on Thursday.

The analyst is drawing consideration to the month-to-month chart, the place the MACD histogram has crossed above zero, confirming a bearish-to-bullish development change.

The bullish bias will strengthen if costs print a month-to-month shut (Friday, UTC) above $9,158, establishing the next excessive.

The shorter length charts are additionally reporting a powerful bullish bias.

Bitcoin has damaged out of a falling channel, indicating a resumption of the rally from lows close to $4,100 noticed in early April 2019.

The breakout is backed by bullish readings on each the MACD histogram and the relative energy index.

The weekly chart is aligned in favor of a rally towards $10,350 (October excessive).

Whereas the every day candle is pink, the losses could also be reversed later at this time as the chances are stacked in favor of the bulls.

Bitcoin defended the previous resistance-turned-support of $9,188 on Thursday with a bullish engulfing candle. That solidified the previous day’s breakout above that stage and signaled a continuation of the rally from $8,213 (Jan. 24 low).

Momentum remains to be sturdy, as advised by the ascending 5- and 10-day averages.

The cryptocurrency might take a look at and presumably break above resistance at $9,586 (Nov. Four excessive) and rise towards $10,000 over the subsequent few days.

The RSI has produced decrease highs or bearish divergence on the 4-hour chart. Because of this, a fast pullback to $9,000 can’t be dominated out earlier than the transfer into 5 figures advised by the every day and weekly charts.

The bias will stay bullish so long as costs are holding above $8,213. The chances of bitcoin falling all the way in which again to ranges under $8,000 are fairly low, according to famend analyst Josh Rager.

Disclosure: The creator doesn’t at present maintain any digital property.