Bitcoin has a very bullish start to the month
BTC futures closed out last month with a small increase for the month. That was enough of a gain that the close for August was second only to June 2019. A more bullish picture is almost finished being drawn out as well on a monthly candlestick chart due to prices above the Ichimoku cloud which has indicated massive rallies in Bitcoin before.
According to Bitcoin Monthly, “Last night, Bitcoin closed out August and opened September with a new candle. At the same time, the leading cryptocurrency by market cap also closed its first monthly candle above the Ichimoku cloud since 2016.That year, BTCUSD closed above the key level twice, unable to hold the first time around. On the second, successful attempt, the crypto asset rose more than 1500% over the next 12 months. Will Bitcoin hold and head off on a new uptrend, or is another retest of support necessary for the cryptocurrency to hold above the key level?”
Currently Bitcoin futures most active contract on the CME is up $275 or 2.32% on the day pegged at $12,110. Putting the entire candle back above the 50% retracement level at approximately $11,550 for the 11th time this month. And just like the Ichimoku cloud analysis if prices can retain pricing above this level, we will most likely be witnessing Bitcoin’s next major rally.
So, to summarize BTC futures basis a monthly candlestick chart not only had their highest monthly close since 2019. Even more bullish this month’s open is the highest monthly open other than the first month of BTC futures when they launched in December 2018. If BTC can hold onto its upward momentum and hold above the 50% retracement as well as the Ichimoku cloud than all is set for a very nice rally taking place. If prices fall back below either of these technical levels than sideways to downside action is probable.