Today, June 30, is the last day of the month, and the Bitcoin monthly candle will close about 8 p.m. ET. This month’s candle isn’t nearly as bad as May of last year, which was one of the worst on record.
However, there’s no disputing that this month has been particularly unpleasant, leaving the market in a state of limbo. Here’s what previous bouts of hesitation have revealed about the current market cycle, as well as what could happen next in Bitcoin, depending on which side of the trade takes control over the next month.
Bulls and Bears are locked in a stalemate, resulting in sideways movement.
Bitcoin has dropped about 60% from its local high to its recent low, and it has only taken three months to do so. The second quarter of 2021 is on track to be the bloodiest on record, with May on track to be the worst monthly decline ever.
Despite the sharp drop, the Bitcoin bull market may still be alive and strong. Investors and dealers are still cautiously purchasing the dip because the market is aware of this.
At the same time, with each failed attempt to push lower, panic sellers are shook out. Price activity – currency forming a red doji candle on the monthly – being wedged between the Tenken-sen and Kijun-sen best explains the sideways price action.
The two span lines are only a minor part of the Ichimoku indicator’s capabilities. The Relative Strength Index (RSI) suggests a negative divergence between the most recent peak and the previous bull market top, as shown below.
The RSI’s miss of the higher, dotted trendline could indicate that another push higher is still conceivable, but Bitcoin’s slide so far out of the bull zone isn’t good. At the same time, the LMACD has began to shift downhill and the parabolic SAR has been tagged, indicating a substantial trend change.
The LMACD hasn’t yet crossed bearish, and bulls could drive another wave higher ahead of any cross. The monthly MACD’s histogram hasn’t yet turned red, which could prevent more decline if the green bars rise again.
What Could Happen After This Monthly Close With Bitcoin And The Red Doji?
Red doji candles, which signify bullish and bearish indecision, have historically culminated in some of the greatest bullish impulses in the months afterwards.
The red doji may indicate that bears are failing to force prices down to lower support levels, and bulls may be able to reclaim control.
After such a massive selloff, the market structure is usually irreversibly broken. The greatest thing the bulls can hope for is a replay of the final wave up from 2013, which featured a green doji to pinpoint the exact bottom before reversing to new highs.
If Bitcoin can reclaim lost highs, a final move higher might push the leading cryptocurrency by market size to the final cycle high, triggering a new bull market peak.
The significance of this monthly close to the bull cycle continuing cannot be overstated, and it is something that everybody involved in crypto should be paying attention to. to pay close attention to
