Bitcoin’s monthly price candle closed above $13,000 for the first time since 2017, when BTC hit a high of almost $20,000
Bitcoin’s monthly candle (BTC) for October closed above $13,000 for the first time since December 2017. It comes after the daily and weekly sails all closed above the crucial resistance level.
Traders often use the monthly record chart to evaluate the macro and long term trend of an asset. On a monthly chart, each candle represents an entire month of trading activity. As such, a Bitcoin monthly log chart typically covers many years of trading activity.
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The monthly chart is considered one of the main time period charts next to the weekly chart. A clear break above a major level, such as $13,000, on the monthly chart indicates a technical break.
The Bitcoin monthly price chart. Source: TradingView.com
$ 13,000 rupture means $ 20,000 is near
As Cointelegraph reported earlier, Cathie Wood of Ark Invest stressed the importance of the $13,000 level.
Wood, who manages $11 billion in assets under management at Ark Invest, said there is little resistance between $13,000 and $20,000. This means that if Bitcoin breaks a high time frame chart, the probability of reaching a new record may be higher. She said :
„This $13,000 level is important because if we went through it, in technical terms, there would be very little resistance and we would probably be back to the peaks we saw at the end of 2017 – then about $20,000 . Now, we’re not sure if that’s going to happen. We could be in a new trading range, just a little above the recent six to 10. Maybe we’re in the $10,000 to $13,000 range. However, an escape. ”
Although the price of Bitcoin reached $20,000 in 2017 and $13,970 in 2019, the monthly candle never closed above $13,000. This is because BTC saw sharp rejections during both peaks, which shook the market.
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The recent high is particularly optimistic because it showed a more sustainable, ladder-like uptrend. As the price went up, it established clear support levels, making the high more stable.
What do traders expect in the short term?
In the immediate future, traders are preparing for a small setback. Technically, Bitcoin’s monthly chart closed significantly higher, above the main short-term moving averages.
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A trader alias known as „Loma“ said that BTC will probably fall to around $13,100 and resume its bullish run. The 5-day moving average on the Bitcoin monthly chart is found at $12,256, so a drop to $13,000 would be healthy for the bullish. Loma wrote :
„The game plan is that we’ll go back on the $ BTC to $12.9-13.1k, which is just enough for the shorts to accumulate in expectation of $12-12.4k again testing, so we use this as nuclear fuel to launch the largest bearnuka candle up, leaving the shorts in Liquidation Land. ”
Similarly, Michael van de Poppe, a full-time broker on the Amsterdam Stock Exchange, said a drop to less than $12,000 could also occur.
As reported by the Cointelegraph , a rollback of Bitcoin entering November would put further pressure on the altcoin market. Bitcoin has sucked most of the market volume out of cryptomorphs, meaning that if BTC falls, sales pressure on altcoins is likely to intensify.