Bitcoin Records 1st Weekly Green Candle In 3 Months


Last week, Bitcoin and the broader cryptocurrency market showed a major reversal of trend by gaining 8 percent in a short period of time. After being separated from US stocks, the world’s largest cryptocurrency has been trying to catch up on this comfortable bounce.

Bitcoin has had a volatile week. However, the cryptocurrency managed to post its first green weekly candle in three months.

As of this writing, BTC is trading at $31,256.62, up 6.0%, with a market capitalization of $595.7 billion, according to figures released by Coingecko.

Earlier in the week, Bitcoin managed to reach its peak of $32,000, but the festivities were short-lived as sellers jumped in and brought the price back to where it was in the past few days.

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Bitcoin shows strong resilience

According to the technical charts, Bitcoin continues to trade above the 200-day moving average (DMA). Historically, it reached its lowest point near or just below the 200 DMA, which is 25 percent below its current price.

Rekt Capital, a famous crypto analyst, explains:

“Historically, BTC tends to bottom at or around the 200-week moving average or just below… BTC would need to lose another 25% to reach the 200 MA.”

BTC total market cap at $597 billion on the daily chart | Source: TradingView.com

January ended in the red, close to its historical red average, with a loss of nearly 16 percent. The Bitcoin market had three consecutive red months until February which provided some respite.

The bulls were in tatters in February and March. However, the month of April was spent on all these rallies.

May, like April, is one of the most favorable months for bitcoin. The crypto has closed six green monthly candles with an average return of 17 percent in the past 10 years.

Reaching the tipping point in May

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Bloomberg statistics, citing figures from CoinMetrics, show that bitcoin miners sent nearly 200,000 BTC to exchanges in the last month of May.

In the meantime, before concluding that this is the start of the next bull market, investors need to exercise some vigilance and caution as the market may be showing signs of another bear market rally at this point.

Bitcoin appears to have reached a tipping point at the end of May. After nearly 10 weeks, the bulls closed a green candle for the first time. Since then, this upward trend line has supported bitcoin.

Featured image from CryptoPotato, chart from TradingView.com



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