Following many months of consistent downturn, Bitcoin has finally been able to form its first green candle on its monthly chart. Despite this, BTC is continuing to trade sideways today, and has continued to struggle to break above $3,900 after experiencing increased levels of volatility last weekend.
One analyst is quick to point out that Bitcoin has not incurred any major volume increase over the past month, despite its climb in price.
Bitcoin Forms First Green Monthly Candle in Eight Months
At the time of writing, Bitcoin is trading up marginally at its current price of $3,880. Last weekend, BTC soared to highs of $4,200 before losing steam and quickly retracing to lows of $3,800, where it found some levels of support.
Recently, Bitcoin has been experiencing increased levels of volatility on the weekends, so it is a strong possibility that the cryptocurrency will break either above, or below, its recently established trading range between $3,800 and $3,900 as the markets head into the weekend.
Although there hasn’t been any significantly positive price action over the past week, it is important to note that BTC has formed its first green candle on the monthly chart in eight months, which means that February did prove to be a good month for the crypto.
SalsaTekila, a popular cryptocurrency analyst on Twitter, spoke about this new development in a recent tweet, noting that this is the first green monthly candle since July of 2018.
“$BTC monthly is about to close as a bullish engulfing on volume increase, the first green monthly candle since July 2018.”
https://twitter.com/SalsaTekila/status/1101260261841948673
The same analyst also explained that he believes Bitcoin will now face resistance around the mid-$4,000 region, while further establishing the low-$3,000 region as a strong level of support.
“Bulls did it, this is my new chart. Leaning bullish above green monthly block. Red box is the big resistance to watch, it’s confluent with monthly. No position, would expect some chop / green test.”
https://twitter.com/SalsaTekila/status/1101293753543860226
Despite Price Gains, BTC has Not Incurred Significantly Greater Trading Volume in February
Although February has proved to be a positive month for Bitcoin’s price, it is important to note that the cryptocurrency has not incurred significantly greater trading volume over the past four weeks.
Josh Rager, a popular cryptocurrency analyst on Twitter, recently spoke about the lack of volume despite the price increases, also noting that he believes BTC is currently forming a rising wedge pattern on the weekly chart.
“$BTC Weekly Chart… I don’t trade patterns, but if I did – this looks like a rising wedge with the weekly candle bodies over the past few weeks… Besides the pump followed by dump last week – no true volume increase with the increase in price over the past month.”
https://twitter.com/josh_rager/status/1101255408902131720?s=12
As the weekend nears, if history repeats itself the entire cryptocurrency markets will begin to experience increased levels of volatility.
Featured image from Shutterstock.
