BTC Yearly Candles Don't Tell Me Much, but the Monthly Candles Sure Do!

LeoFinance
4 days ago
2 Min Read
336 Words

I have seen chatter on btc yearly candles. I'm sure something can be gleaned from it but I found much better clarity from looking at the monthly chart!

Overbought and Stretched Liked Bull Moves Gone Past

When looking at the below chart the first thing that pops out at me is the fact that we have two huge green vertical candles presently.

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If you look at the history of past big bullish moves you will see that in both prior instances there were generally three consecutive bullish green candles following what was essentially a consolidation month.

So far this moves is setting up exactly the same.

What does this tell us?

Well, if history repeats for a third time then December will likely be a green month for BTC.

Where does that takes price is the question? Given that all time highs are less than 2K away it is likely we see those tested and possibly broken.

Does a pullback ensue at that point? It quite possibly could and let me tell you why.

Stretched from the 10 period moving average

The 10 period moving average is something I use regularly when charting the daily price chart. However, this same average, but on a monthly view looks to be useful as well.

When looking back at the last two big moves the price got extended from the moving average by 200% or more which also marked the final month of the move higher before seeing a substantial pullback.

As of right now the price of BTC is 170% above the 10 period moving average.

Conclusion

All of this leans the probability toward December being a green month that sees price push even further from the 10 period moving average to crack above 200% or more away from it.

Assuming that this moves acts the same as the last two big bull runs. This is all just my opinion based on what the chart is showing me though.

Posted Using LeoFinance Beta