Why A Bitcoin Monthly Close Above $23,000 Hints At More Momentum For The Bulls
Bitcoin continues to hold above the $23,000 psychological level for bulls as it nears the end of the month. The industry’s largest cryptocurrency by market cap may have another continuation signal to conquer new annual highs in its 50-month moving average indicator.
This is a key threshold for Bitcoin if bulls expect an uptrend above the $25,000 resistance level. For the data and research analysis firm Material Indicators, a monthly close above the 50-month moving average (MA) could signal a medium-term win for the bulls.
What’s Ahead For Bitcoin In March?
According to a recent post on Twitter by an analyst from Material Indicators, the battle for the directional bias of BTC is currently being fought between bulls and bears at the 50-day moving average (MA). A close between the 50-month MA could lead to a green monthly close and a continuation of the range that Bitcoin has experienced in recent weeks.
In addition, a close above the 50-month MA will provide the bulls with the momentum they need to continue the uptrend BTC has been in since January and a further test of the nearest resistance walls holding the price action in the current range.
On the other hand, a close below $23,128 for Bitcoin could result in a red month for the largest crypto asset in the market, invalidating the uptrend and a possible retest of the lows and support levels that are key to prevent further declines in BTC’s price. Material Indicators said:
Would like to see more BTC bid liquidity enter the active trading range to increase the chances of closing the Monthly candle above the 50-Month Moving Average. Volume has been weak, so at this stage doesn’t feel bullish.
Bull Market Signal For BTC
Another bullish signal has been spotted on the Bitcoin charts, indicating the crypto-winter thaw and spring’s bloom in the BTC price.
The Pi Cycle Top/Bottom Indicator predicts the cycle top and bottom of the Bitcoin market cycles. It attempts to predict the point at which the price of BTC will peak before falling and vice-versa. This indicator has historically been effective at predicting the market cycle timing tops within 3 days. It demonstrates the cyclical nature of Bitcoin’s price over longer time frames.
According to a Twitter post by CryptoCon, a technical analyst and long-term data researcher, the Pi Cycle top/bottom indicator has signaled the beginning of a new bull market.
CryptoCon noted that after a year of decline, the yellow 111-day MA has begun to ascend, as seen in the chart above.
This indicator uses the 111-day moving average (111-MA) and a newly created multiple of the 350-day moving average, the 350DMAx2 (the multiple is calculated from the values of the 350-MA, not the number of days). Whenever the 111 DMA has turned and peaked to the upside, it has marked the beginning of a bull market, as in the previous cycles of 2012, 2015, and 2020.
BTC is approaching the monthly close well above $23,000, which could lead to a green close and a short-term win for the bulls. If not, the bears will test the supports at $22,500 for a possible further test of the $21,000 level.
Bitcoin is trading at $23,500, down -1.1% for the past 24 hours. BTC has seen a significant profit decrease in the broader time frame, with a drop of -5.2% over the past seven days. In the fourteen and 30-day time frames, it has managed to maintain gains of 7.8% and 2.1%, respectively.
Featured image from Unsplash, chart from TradingView.