Bitcoin price continues to be in a downtrend and fell below the $64,000 support earlier this week. The move solidified the bears’ lead and suggested further selling may occur as investors seek to avoid further losses. Amidst the turmoil, major historical trends seem to be in danger of being disrupted. This is related to the previous cycle’s highest monthly close, the level at which Bitcoin is currently dangerously depressed.
Bitcoin fears new monthly cycle highs
Crypto analyst Anderson pointed out that: analysis Posted on X that Bitcoin is now dangerously close to breaking its previous monthly cycle high. What’s interesting about this development is that in each cycle, Bitcoin price never ended on a monthly candlestick lower than the previous monthly cycle high. What this means is that if this happens, it will be a first in history and will likely mark a new trend in digital assets.
Bitcoin price is hovering around $65,000, only $4,000 away from the previous monthly cycle high of $61,359. Bitcoin prices are still trending downward, and with a few days remaining until the end of February, there is a strong chance of a breakout from the previous cycle’s highs.
In the post, the analyst shared the previous cycle’s performance and showed that it had never broken the highest monthly cycle closing price. Rather, this level has served as a major support in the past, often helping to mark the bottom before the next up wave begins. “If we close below this, this would be the first time in history that we have seen a breakdown of upside at the monthly cycle level,” Anderson explained.
There’s a first time for everything
In response to Anderson’s post, another crypto analyst, Crypto Ferrus, explained that there is always a beginning for everything, and that a break could occur. One example cited was the fact that the Bitcoin price had actually never fallen below the weekly MA200. However, this was broken in the last cycle, ushering in a new era. “Now that the monthly has a higher TF, it may take even longer to break that rule. This is an additional cycle on top of breaking the weekly MA200 rule,” Crypto Ferrus added.
Anderson acknowledged that possibility, but noted that Bitcoin actually fell below the weekly 200-EMA and 200-SMA before breaking above the weekly 200-MA. However, there is still no precedent for the stock to beat the previous cycle’s monthly closing price, and if it were to happen, it would be a noteworthy development.
Featured image from Dall.E, chart from TradingView.com
editing process for is focused on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards, and each page is carefully reviewed by our team of top technology experts and experienced editors. This process ensures the integrity, relevance, and value of your content to your readers.
