The monthly Bitcoin (BTC) candle for October closed above $ 13,000 for the first time since December 2017. This happens after the daily and weekly candles that close above the critical resistance level.

Traders often use a monthly log chart to assess the long term trend and origin of an asset. On a monthly chart, each candle represents a full month of trading activity. Thus, a monthly Bitcoin ledger chart typically spans several years of trading activity.

Along with the weekly schedule, the monthly schedule is one of the most important periods of the holidays. A clear break above a significant level such as $ 13,000 on a monthly chart indicates a technical breakout.

Violating $ 13,000 means $ 20,000 is close
As Cointelegraph previously reported, Katie Wood of Ark Invest highlighted the importance of the $ 13,000 level.

Wood, which manages $ 11 billion in assets under Ark Invest, said there was little resistance between $ 13,000 and $ 20,000. This means that if bitcoin breaks out on a higher timeframe chart, it is likely to rise to a new, higher all-time high. She said:

“The [level] of $ 13,000 is important because if we had to cross it, there would technically be very little resistance and we could go back to the highs we saw at the end of 2017 – about $ 20,000. Now we don’t know what exactly. If it happened. We could have stayed in the new trading area, only at a slightly higher level than the previous 6-10. We may be in the $ 10,000 to $ 13,000 range. Go. ”
Although Bitcoin reached $ 20,000 in 2017 and $ 13,970 in 2019, the monthly survey never closed above $ 13,000. This is because Bitcoin experienced a sharp rejection below both peaks, further upsetting the market.

The recent rally is particularly optimistic because it has shown a more robust upward trend, such as up the stairs. As the price rallied, clear support levels emerged, making the rally more stable.

What do short-term traders expect?
In the near future, traders are ready for a small drawing. Technically speaking, Bitcoin’s monthly chart closed well above the major short-term moving averages.

A trader known as “LUMA” said bitcoin is likely to drop to around $ 13,100 and resume gains. The 5-day moving average on Bitcoin’s monthly chart was found at $ 12,256, so a drop to the $ 13,000 low would be beneficial for the rally. Loma wrote:

“Our game plan is to increase BTC by $ 12.9K to $ 13.1K, which is enough to accumulate shorts to anticipate the $ 12K to $ 12.4K test again, so we will use it. as nuclear fuel. and leaves the shorts in the filter medium. ”
Likewise, Michael Van de Pope, a resident trader on the Amsterdam Stock Exchange, said there could also be a fall below $ 12,000.

As Cointelegraph reported, the November Bitcoin withdrawal will put additional pressure on the cryptocurrency market. Bitcoin has absorbed most of the cryptocurrency market volume, which means that if Bitcoin falls, selling pressure on cryptocurrencies is likely to intensify.

Source: CoinTelegraph