According to CoinDesk analyst Omkar Godboul, the price of Bitcoin (BTC) is rising for the third month in a row and soon will finally confirm the reversal of the long-term trend.
Currently, digital gold is trading above $ 5,200. Compared with the opening price of the current monthly candle at $ 4081, the increase was more than 26%. Over the previous two months — February and March — Bitcoin grew by 9.8% and 8.16%, respectively. Thus, for the first time since the second half of 2017, the BTC price has been rising for three months in a row.
This April, the price of Bitcoin was finally able to break out of the long-term downward channel, confirming a bullish reversal.
Bitcoin Monthly Chart (BTC)
Below on the charts with a monthly timeframe, you can see that a similar situation was observed in 2015. After the breakdown of the channel, a 2.5-year growth phase began, at the end of which in December 2017, Bitcoin approached $ 20,000.
The graph on the right shows that a breakdown of the “Downward Wedge” bull pattern recently took place. The upward movement of the BTC price is likely to continue in the coming months, and one of the most important fundamental growth factors will be the halving of the miners reward for the mined block, which is expected in May 2020.
The so-called halving will significantly reduce the inflation of the first cryptocurrency, making it an even more scarce asset. Confidence in further growth is supported by the fact that the previous bull market began about a year before the last halving in July 2016. The beginning of the rally can be considered the above breakdown of the downward channel, accompanied by a sequence of rising highs and lows of the price.
However, May is unlikely to end on a positive wave for Bitcoin, if its price fails below $ 5,142. The latest at the moment is a 30-day simple moving average (MA).
Bitcoin daily chart (BTC)
On the lower timeframe it can be seen that the BTC price is currently “floating” over the 30-day MA, occasionally touching it. This line has long been a strong support. An energetic rebound from the MA 30 will open the way to the $ 6000 mark.
On the other hand, if this time bitcoin does not stand above MA 30, then very soon the price will fall to the mark of $ 4675, through which MA 50 passes. This scenario should not be discounted, since the bearish RSI divergence signals in its favor.
Publication date 01/05/2019
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