What Does Bitcoin’s Monthly Close Tell us about the Future?

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In Brief
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Last night, the Bitcoin price closed its monthly candlestick for March. The candlestick took the form of a bearish hammer, with a very long lower-wick.

It closed 24% below the opening price, while the candlestick had a lower-wick with a magnitude of 40%.

Bitcoin Monthly Candlestick For March

The values for the March candlestick are as follows:

  • Open – $8,525
  • Close – $6,410
  • High – $9,219
  • Low – $3,850

It is worth noting that the lower-wick had a magnitude of 40%, which indicates that there was significant buying pressure at prices below $6,000. However, the candlestick still had a bearish body of 24%. The candlestick looks akin to a bearish hammer.

While this is typically a bearish indication, the price had managed to hold above $6,450, which is an important high time-frame support area. A close below this level would be a major bearish development. As long as the price can keep above this level, a bullish continuation could occur.

In addition, the monthly RSI has reached the 50-line from above. Similar to the $6,450 support, a decrease below this level would indicate that the trend is likely bearish.

Bitcoin Monthly Chart
Bitcoin Chart by Trading View

Short-Term Outlook

In the short-term, the price has been following a descending resistance line since March 15 when it reached a high of $6,957. At the time of publishing, the price was rejected from the resistance line and had begun to decrease.

In addition, there is a strong resistance area at $6,500, which the price has unsuccessfully attempted to break out from for the past two days.

Finally, it is possible that the price is following an ascending support line. A failure to break out above the current resistance line could trigger a decrease toward support. At the time of publishing, this movement seems likely.

BTC Movement
Bitcoin Chart by Trading View

To conclude, the BTC price has created a bearish hammer candlestick for the month of March but has managed to stay above an important monthly support level. In the short-term, the price is expected to decrease towards the support line of the possible symmetrical triangle.

For those interested in BeInCrypto’s previous Bitcoin analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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