Bitcoin Just Printed a Monthly Close Above a Pivotal Support Level
It’s been quite the boring past four weeks for the Bitcoin market. The cryptocurrency, after suffering a strong plunge at the start of the month, was largely rangebound between $10,000 and $11,000 over September.
Despite the lack of strong price action, not all hope is lost for Bitcoin bulls.
In fact, many analysts remarked at the time of the candle close that the cryptocurrency is actually in a good long-term position. Here’s why they think so.
Bitcoin Prints Crucial Monthly Candle Close
Bitcoin has seen a weak performance over the month of September. Since the start of the month, the cryptocurrency has slipped a handful of percent, printing a red candle for the first time since June.
Despite this drop, not all hope is lost.
The cryptocurrency, having bounced strongly from the monthly lows around $9,800, is actually in a bullish state as per some analysts.
One trader shared the chart below right after the monthly candle close. The chart shows that Bitcoin is actually sitting above a level of macro support, $10,500, on a monthly time frame.
This level marked the highs of Bitcoin’s rallies in 2019 (monthly time frame) and in February (intra-month time frame). Bitcoin managing to turn this level into support suggests the formation of a “bullish trend” on the monthly chart, the trader said.
The trader that made this observation is the same one that predicted in the middle of the March crash that the asset would see a V-shaped reversal to $10,000 by May/June. He was proven correct just months after he made this call, nailing the timing and the shape of the price action.
Long-Term On-Chain Trends Also Bullis
Long-term on-chain trends are also bullish for Bitcoin.
CryptoQuant, a crypto-asset analytics and data firm, recently shared that the following ten of its eleven long-term on-chain trends are currently printing “buy” signals for Bitcoin:
- Miners’ position index
- Puell Multiple
- Hash Ribbons
- All Exchanges Outflow Mean
- All Exchanges Reserve
- Stablecoin Supply Ratio
- All Exchanges Stablecoin Reserve
- MVRV Ratio
- Network Value to Metcalfe Ratio
- Stock to Flow
While on-chain trends aren’t perfect determinants of price action over the short term, these long-term trends suggest that Bitcoin is in a phase of macro growth.
Where the cryptocurrency will rally to, though, remains to be seen.