Friday, June 9, 2023

Bitcoin’s First Green Month


Although bitcoin had a rough month in February, the digital asset managed to come out on top in the end.

Bitcoin has now seen its first green month after three months of red closes. The surge that began at the conclusion of the month is to blame for this. This isn’t the first time that a digital item has sparked such a craze. The cryptocurrency’s previous performance can help to predict what to expect in the future.

A Victorious Green Month

Bitcoin has routinely concluded the following three months in the red since hitting its peak in November. It struggled in this pattern until late February, when it burst out with a surge that saw it close in the green once more. After three red closes, this is the first green closing. It’s significant in light of previous trends that have been sparked by events like this one.

After three red closes, the most recent one-month green closing occurred in July 2021. Remember that in July of last year, bitcoin had reached a high point. It was about to enter a three-month period of price volatility. However, after the support of the one-week MA50, the price of the digital asset recovered to a new high after making the July one-month green candle.

Another example was the one-month green candle that appeared in June 2015 following three straight red months. The bottom of the 2014-2015 bear market had been reached, and the new bull rally had begun. The same was true of the one-month green candles that emerged in February 2019 and December 2011 after consecutive red months.

Based on prior performance, this could indicate that the digital asset is preparing for another bull run. Given that the price of bitcoin continues to move above the 50 moving average, it would be especially persuasive.

Constantly Changing Trends

The continually changing patterns in bitcoin are one constant. As a result, a green candle following three or more consecutive red months does not always indicate that the digital asset will continue to rise. It has also had the unintended consequence of becoming the catalyst for BTC’s resumption of a bear trend.

This was the situation with the one-month green candle that appeared in October 2019 following three months of red candles. Following this, the price of the digital asset sank to a new low, as the 1 week 50MA failed to hold, as it had done previously.

The similar thing happened in November 2014, when the asset was pushed to a new low after failing to hold the 1W MA50 support. This happened again in May 2014, with a new low.

The failure of bitcoin to hold above the 1W MA50 has been a recurring theme in all of this. This suggests that in order for bitcoin to begin a bull run, the price must remain above the 1W MA50. Failure to do so might push the market to new lows, which at this time would mean a dip below the $30,000 barrier.

Rainy Naidoo
Rainy Naidoo
Rainy Naidoo is a writer for Cryptoconstellation. She has her Degree in Journalism and communications. Rainy Likes to spend her free time reading and exploring new places.

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