Thursday, March 11, 2021

Bitcoin May Close March Bearish

Yesterday, Bitcoin showed a bullish signal that encouraged investors that the crypto was showing a better price action compared to last week. This quarter has been the most profitable quarter on record for the king cryptocurrency. Within the past three months, the coin has gained more than $25,000.

However, despite this enormous price gain, the coin is showing its first ever bearish divergence on quarterly timeframes in the asset’s history.

Last year, alongside the pandemic showed incredible resilience. During 2020, the price in the first three quarters of the year ranged from $4,000 to $10,000. But as soon as it broke this range, the price skyrocketed.

As the price traded for $56,897 at 18:29 GMT on Thursday, gaining 0.04% in the last 24 hours, the hike in the volatility of the coin indicated a bullish signal. The rise of Bitcoin addresses was also important as a metric. As of writing, there were 36 million Bitcoin addresses with a non-zero balance. A year-to-date growth of 9%.

Another indication of this bullish trend is the increased capitalization of the coin. It is probable that Bitcoin’s price has already moved past the $48,000 to $54,000 range. This is a price appreciation that is only 7% compared to Ethereum’s 14% over the last week.

Bearish divergences are stacked against Bitcoin

An analyst noted that the coin would need to add another $20,000 or so to bring indicators high enough to close the month out without falling victim to the several bearish divergences stacked against it on the quarterly candle.

Sadly, traditionally, March has been a bad month for the coin. In 2020, Bitcoin fell from $10,000 to $3,800 in a few days. Hence, the possibility of such a $20,000 gain is highly unlikely.

Bitcoin Performance Month by Month

Although in the past technical indicators stacking with bearish divergences on Bitcoin only resulted in a strong uptrend.

bitcoin divergence

The chart above shows how clear the bearish divergence is. To avoid these signals confirming with a bearish reversal in the short-term, Bitcoin price would need to continue to climb by “$20,000 to $30,000” more before the end of March.

Nothing is impossible with Bitcoin as the bullish signals in the near term are strong. Another $20,000 to $30,000 move in less than 20 days can not be ruled out.

If you have any questions and comments on Bitcoin today, use the form below to reply.

© IbrahimAnifowoshe for Commodity News, 2021. | Permalink | No comment |
Published under: Bitcoin, Forecasts

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