The price of bitcoin has been consolidating the past couple weeks, that consolidation has created a descending channel that price is pushing up against the topside of.
This really isn't something that I am too concerned with, but it does potentially keep price from reaching above 58,350.
But more on that price level in a minute.
So looking at the descending channel, even if price was to trend back down to the support line of it that would takes us roughly to the 48K level, which is a prior bottom before price swung to the all-time high.
When you downside scenario is just heading to a possible support level there is not much to complain about.
Now granted, anything can happen at anytime and the current candle can go green and push price right out of this channel.
Let's hope for that.
The reason I am rooting for a breakout of the descending channel this week is because the end of the month looms.
Yup, that crazy move higher represents the monthly chart of Bitcoin. If you notice, each month had a closing price higher than the previous month's price high.
That is very bullish. Right now price is at risk of breaking that streak unless it closes above the 58,350 I mentioned earlier.
If it doesn't, that does not mean the world is gonna end and price will collaspe. However, it will be a dent in the armor of this bull move that is already extended on a monthly timeframe.
In fact, if April turns out to be a green month it will be the first time in bitcoin's history that it had 7 straight green monthly candle.
So, April shall be interesting indeed. Especially given Q2 is usually a bullish timeframe for bitcoin.
Posted Using LeoFinance Beta