Despite having a tough February, Bitcoin (BTC) has finally managed to make it to the top. The leading crypto has recorded its first, monthly green candle after quarterly red closes. The rally that started at the end of the month is responsible for this. However, this isn’t the first time the crypto market has seen such a trend, and the cryptocurrency’s past performance could help predict what to expect in the future.
First green for Bitcoin complete
Bitcoin (BTC) has routinely finished negative for the next three months since reaching its ATH level in November. He struggled in this setup until late February, when he exploded with a surge that saw him close in the green once again. After three red closes, this is the first green close. Notable in light of previous trends triggered by events like this.
Another example was the one-month green candle, which appeared in June 2015 after three solid red months. The bottom of the 2014-2015 bear market was reached and a new bull movement started. The same was true for the one-month green candles, which appeared in February 2019 and December 2011 after consecutive red moons. Based on previous performance, this could indicate that Bitcoin is preparing for another bull run. Considering that the Bitcoin price continues to climb above the 50 moving average, it is extremely convincing, according to analysts.
But not everything is positive
The constant thing about Bitcoin is the ever-changing trends. As a result, a green candle that follows three or more red bears in a row does not always indicate that the leading crypto will continue to rise. It has also had unintended consequences, such as being the catalyst for BTC to restart the bear trend.
This was the case with the one-month green candle, which emerged in October 2019 after the three-month red candles. Following this, BTC price set a new low as the 1-week 50MA failed to hold as before. Something similar happened in November 2014, when Bitcoin hit new lows 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 throughout all of this. According to the analyst, this indicates that the price must stay above the 1W MA50 for Bitcoin to start its bull run. Failure to do so could push the market to new lows, which currently means a drop below the $30,000 barrier.
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