In just over 120 minutes as of the time of this article’s publishing, Bitcoin’s one-month and three-month candles will close. A number of analysts have remarked that the upcoming close will be crucial for the crypto market’s directionality moving forward.
With Bitcoin currently changing hands for $6,470, the bull-case close scenario seems possible.
According to CryptoISO, however, whatever the candle closes at, it seems to be in a bearish structure.
Related Reading: This Key Metric Suggests the Crypto Market’s Downturn Will Be Shortlived
Levels to Watch For
, Bitcoin closing above $6,425 when the monthly candle closes in the very near future would be one of the feasible best-case scenarios for the cryptocurrency:“Bitcoin monthly close above $6,425 would be a solid bullish [swing failure pattern] to make April to May brighter.”Indeed, $6,425 is a crucial level from a long-term perspective, as that’s where BTC bottomed in December. Also, the low-$6,000s were absolutely key for Bitcoin during the 2018 bear market: the cryptocurrency bounced off that region on multiple occasions.
Many have also pointed to the fact that March’s candle looks like the bottoming process seen during the 2013-2015 cycle, during which Bitcoin saw a massive capitulation event that saw it similarly fall by some 50% within a few days’ time span, to only bounce back in the weeks that followed.
Related Reading: King of the Hill: Top Crypto Investor Explains Why Altcoins Are Highly Risky
The prominent trader wrote in a message on March 31st that while “people [are] fixated on the monthly close,” the “high time frame market structure is bearish” because March’s candle opened at $9,200 to fall to $3,600 at the lows, a drop of more than 60%.People seemed to be fixated on the monthly close. High time frame market structure is bearish. The monthly candle goes from 9200 to 3600. That is absurd. — CryptoISO (@crypto_iso)
Bitcoin To Outperform In Q2?
Bitcoin is poised to close 10% down on the quarter, making this the fifth out of the past seven first quarters that the cryptocurrency has trended lower, suggesting this market has a negative winter seasonality to it. The thing is, as can be seen in the chart below from , the second quarter of years have historically been bullish for the cryptocurrency, with BTC rallying more than 20% in five out of the last six second quarters.
Featured Image from Shutterstock
