The October monthly Bitcoin (BTC) candle closed above $ 13,000 for the first time since December 2017. It does this after the daily and weekly candles close above the critical resistance level.
Traders often use the monthly logarithmic chart for assessing the macroeconomic and long-term trends of an asset. On a monthly chart, each candle represents a full month of trading activity. Hence, a monthly logarithmic chart of Bitcoin generally covers many years of activity.
The monthly chart is one of the top charts for longer periods of time, along with the weekly chart. A sharp break above an important level like $ 13,000 on the monthly chart signals a technical breakout.
Going above $ 13,000 means you are running out of $ 20,000
As Cointelegraph previously reported, Cathie Wood by Ark Invest He emphasized the importance of the $ 13,000 level.
Wood, who has $ 11 billion under management at Ark Invest, said so There’s little resistance between $ 13,000 and $ 20,000. It means that If Bitcoin breaks out of a longer timeframe, the likelihood of climbing to a new high may be higher. She said:
“The [nivel] $ 13,000 is important because if we break through there will be very little resistance technically, and we’re probably on our way back to the peaks we saw in late 2017, around $ 20,000. We’re not sure if that will happen. We could stay in a new trading range that is only slightly above the last six to ten. We could be in the range of $ 10,000 to $ 13,000. However, there may be an interruption. “
Although the price of Bitcoin hit $ 20,000 in 2017 and $ 13,970 in 2019, the monthly candle never closed above $ 13,000. This is because BTC saw heavy rejections during both spikes that later rocked the market.
The recent increase is particularly optimistic as it has shown a more sustainable trend similar to an ascending ladder. As the price rose, clear support levels were set that made the move more stable.
What do short-term traders expect?
In the near future, dealers are preparing for a little kick. Technically, Bitcoin’s monthly chart closed well above major short-term moving averages.
A pseudonymous trader known as “Hill” He said BTC would likely drop to around $ 13,100 and start the rally again. The 5-day moving average on Bitcoin’s monthly chart is $ 12,256, so a drop to $ 13,000 would be healthy for the move. hill wrote::
“The game plan calls for us to explode up to USD 12,900 – USD 13,000 on $ BTC, which is enough for the shorts to pile up and wait for another test of USD 12,000 – USD 12,400. Then we use them as nuclear fuel to drop Bigger Bearnuka Candle Leaving Shorts in Landia Clearance “.
Similar, Michael van de Poppe, a full time trader on the Amsterdam Stock Exchange, said that a drop below $ 12,000 could also occur.
As Cointelegraph reported, A decline in the price of Bitcoin at the beginning of November would put even more pressure on the altcoin market. Bitcoin has absorbed most of the volume of the cryptocurrency market, which means that selling pressures on altcoins would likely increase as BTC drops.