Bitcoin (BTC), the largest and oldest cryptocurrency on the crypto market, has been declining for months. At the end of 2017 the crypto was worth almost $ 20,000, at the time of writing that is only $ 3,637. When will the tide start to turn?
If we look at the monthly chart, we see that bitcoin has been a red candle every month since July 2018. This means that the price at the end of the month was lower than the price at the beginning of the month. For six months in a row, bitcoin has therefore seen a plummeting course, something that corresponds to the prevailing bearish sentiment on the overall crypto market.
But February may be the first month with a green candle for bitcoin. According to bitcoin trader Josh Rager, that will happen as long as bitcoin continues to trade above $ 3,413:
Bitcoin has been working on its first green candle since July 2018. Over the past six months, bitcoin has seen red on the monthly chart. If the price falls below $ 3,413, that red monthly trend will continue.
Rager on Twitter.
Is this a sign that the crypto winter is finally coming to an end? This is difficult to say, as the short-term technical indicators still point to continuation of the current trend. In addition, price movements can not be predicted solely on the basis of technical factors.
There are also fundamental factors that should absolutely not be forgotten. These are factors such as the number of transactions made with bitcoin and how many institutional investors decide to invest in bitcoin. According to researchers, BTC may not recover until the second part of 2019. Only then do the fundamental factors and technical indicators show up again.