Bitcoin currently expresses intense signs of strength as its price rises towards the $ 12,000 region.
Although this key successfully breached the level, its strong night rise seems to indicate that a higher move is close in the near term.
This power is probably based on the monthly close that the cryptocurrency could release yesterday. This was the first time in three years that it was able to close the monthly candle of Bitcoin over $ 10,700.
Many analysts state that this could be one of the most positive factors working in favor of the cryptocurrency in a technical sense.
It is also seen that this new development already supports the medium term outlook of BTC.
An analyst stated that Bitcoin closed the 3-day candle above the upper limit of Bollinger Bands. When this last happened, he saw a parabolic rally, the price of which increased from $ 5,000 to $ 14,000.
Bitcoin Flashes Power Signs After Amazing Monthly Closing
At the time of writing, Bitcoin is trading slightly above 2% at its current price of $ 11,600.
Overnight, the bulls could rise to $ 11,800 before reaching an impenetrable resistance zone.
The selling pressure it faced here slowed its rise and even catalyzed a slight rejection towards current price levels.
However, it still remains in a sharp uptrend in the medium term and a slight retreat like this is expected.
While looking away and looking at the macro price structure, the gains recorded over the past few weeks have significantly improved the outlook.
An analyst explained It is now unreasonable to fall after BTC has recorded such a strong monthly closing.
"BTC HTF Update: Imagine being the strongest, downward trend on a monthly basis in 3 years," he explained, pointing to the table below.
Image Courtesy of Cactus. Chart via TradingView.
BTC May Rising for a Higher Parabolic Thrust
Another popular cryptocurrency analyst explained Bitcoin's three-day candle is closing just above the upper limit of the Bollinger Bands.
Cryptocurrency rose from $ 5,000 to $ 14,000 when it finally closed above this technical level.
"The Bitcoin 3-day candle has just been closed and the entire range has been traded above the top BB – the final realization was April 4, 2019, about $ 5000 before taking it to $ 14000," he said.
Image Courtesy of Cheds. Chart via TradingView.
The explanation for this technical improvement shows that, coupled with the strong monthly close of Bitcoin, BTC could be in a good position to make remarkable earnings in the second half of the year.
Featured image from Unsplash. Charts from TradingView.