More

    Bitcoin Could Close March With First Ever Quarterly Bear Signal

    Bitcoin has had its most profitable quarter on record dollar for dollar, rising more than $25,000 in Q1 alone. But despite the enormous bullish impulse, the price action has left behind the first ever bearish divergence on quarterly timeframes in the asset’s history.
    Making matters worse, March is historically be worst month on record for the top cryptocurrency over the course of the last ten years. Could the bearish signal combined with this factor result in a much more sizable correction across crypto?
    Bearish Divergences Stack Against Bitcoin On Quarterly Timeframes
    2020 was the year of the pandemic, and the year of Bitcoin. During that time, Bitcoin price spent the first three quarters of the year ranging between $4,000 and $10,000, but once that range was finally broken towards the end of the year, there were fireworks come Q4.
    Q4 is traditionally a time for enjoying the fruits of one’s labor with Thanksgiving and other holiday celebrations, and this year was especially fruitful for investors who weathered the long crypto winter.
    Related Reading | Bitcoin Shakes Off Dollar Rebound But Beware Of Coming Bear Phase
    With an unprecedentedly negative year in the rear view, the exuberance of the celebrations have carried well into Q1 2021, and taken Bitcoin to its best quarter ever in terms of total dollars gained.
    Q4 resulting in a stunning $18,000 added to the price per BTC, while in Q1 2021 alone, there’s already been another $28,000 added to each coin’s price tag, with more than two thirds of the month of March left to go.
    However, according to one crypto analyst, Bitcoin price would need to rise another $20,000 or so to bring indicators high enough to close the month out without falling victim to several bearish divergences on the quarterly candle.

    Several popular trading indicators are signaling a bearish divergence | Source: BTCUSD on TradingView.com
    Why Probabilities Point To A Correction, Not Continuation For Crypto
    The sharp-eyed trader checking the not-often watched timeframe was able to spot a bearish divergence on the Relative Strength Index, RSI, On-Balance Volume, Chaikin Money Flow, Money Flow Index, Commodity Channel Index, and the Accumulation/Distribution technical indicators.
    Related Reading | Why March Is The Bloodiest Month In Bitcoin History
    In this past, this many technical indicators stacking with bearish divergences on Bitcoin, resulted in one of the strongest uptrends in the cryptocurrency’s history.

    The bearish divergence on the RSI is clear as day. | Source: BTCUSD on TradingView.com
    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 tor climb by “$20,000 to $30,000” more before the end of March.
    However, March is historically the worst month on record for Bitcoin, and that makes the probability of such a continued move unlikely.
    But then again, this is Bitcoin and this bull market is the most powerful yet, so anything at all is possible, including another $20,000 to $30,000 move in less than 20 days.
    Featured image from Deposit Photos, Charts from TradingView.com

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Newsletter

    Subscribe to stay updated.

    bitcoin
    Bitcoin (BTC) $ 64,475.00
    ethereum
    Ethereum (ETH) $ 2,387.12
    binance-coin
    Binance Coin (BNB) $ 567.02
    xrp
    XRP (XRP) $ 1.80
    cardano
    Cardano (ADA) $ 1.44
    tether
    Tether (USDT) $ 1.00
    polkadot
    Polkadot (DOT) $ 42.36
    uniswap
    Uniswap (UNI) $ 34.95
    litecoin
    Litecoin (LTC) $ 269.11
    dogecoin
    Dogecoin (DOGE) $ 0.134469
    chainlink
    Chainlink (LINK) $ 37.04
    bitcoin-cash
    Bitcoin Cash (BCH) $ 800.62
    stellar
    Stellar (XLM) $ 0.625102
    theta-token
    Theta Network (THETA) $ 12.17
    filecoin
    Filecoin (FIL) $ 173.22
    usd-coin
    USD Coin (USDC) $ 1.00
    vechain
    VeChain (VET) $ 0.163646
    tron
    TRON (TRX) $ 0.140386
    wrapped-bitcoin
    Wrapped Bitcoin (WBTC) $ 64,131.00
    eos
    EOS (EOS) $ 7.57
    solana
    Solana (SOL) $ 26.03
    klay-token
    Klaytn (KLAY) $ 2.70
    crypto-com-chain
    Crypto.com Coin (CRO) $ 0.254556
    terra-luna
    Terra (LUNA) $ 16.06
    compound-ether
    cETH (CETH) $ 47.61
    monero
    Monero (XMR) $ 324.72
    cosmos
    Cosmos (ATOM) $ 24.33
    iota
    IOTA (MIOTA) $ 2.08
    okb
    OKB (OKB) $ 21.27
    bitcoin-sv
    Bitcoin SV (BSV) $ 297.93
    bittorrent-2
    BitTorrent (BTT) $ 0.008100
    binance-usd
    Binance USD (BUSD) $ 0.998610
    aave
    Aave (AAVE) $ 403.66
    ftx-token
    FTX Token (FTT) $ 56.74
    tezos
    Tezos (XTZ) $ 6.50
    neo
    NEO (NEO) $ 67.09
    avalanche-2
    Avalanche (AVAX) $ 35.06
    kusama
    Kusama (KSM) $ 466.70
    compound-usd-coin
    cUSDC (CUSDC) $ 0.021903
    elrond-erd-2
    Elrond (EGLD) $ 232.02
    algorand
    Algorand (ALGO) $ 1.47
    huobi-token
    Huobi Token (HT) $ 20.79
    nem
    NEM (XEM) $ 0.418449
    pancakeswap-token
    PancakeSwap (CAKE) $ 23.71
    thorchain
    THORChain (RUNE) $ 15.19
    cdai
    cDAI (CDAI) $ 0.021372
    holotoken
    Holo (HOT) $ 0.018275
    dai
    Dai (DAI) $ 0.999437
    hedera-hashgraph
    Hedera Hashgraph (HBAR) $ 0.381724
    dash
    Dash (DASH) $ 299.74