Bitcoin leaves the downtrend and is preparing for growth in February

Bitcoin remains in a bullish trend heading into a historically strong February, writes Coindesk analyst OmkarGodball

On January 3, the price of bitcoin rose above $ 7,000 and has since been on an upward trajectory, reaching a three-month high of about $ 9,570 on Thursday.

With the current price of $ 9350, bitcoin is showing30% monthly growth is the best indicator for January since 2013. In addition, cryptocurrency ends the month with double-digit profit for the first time since June 2019, when the price rose by 26%.

January BTC Rally Marks U-Turnafter a six-month downtrend, as a result of which the price fell from $ 13,880 to $ 6425. Given that bulls continue to dominate the market, February could also be a good month for bitcoin.

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February's historically good performance explainsbecause Chinese investors tend to sell cryptocurrency ahead of the New Year holidays in January and reinvest in February, which leads to higher prices. This time, however, the proposed post-holiday reinvestment could be delayed due to the novel coronavirus outbreak, potentially weakening the bullish momentum.

However, there are currently no signs of a bearish return in the bitcoin market:

"It's hard to find any bearish argument", - wrote on Thursday a popular trader and analyst under the nickname Filbfilb.

Bitcoin closes the Month tomorrow.

A close above $ 9158 prints a higher high on the monthly close for the first time since June 2019.

There is also a bullish cross on the MACD above zero.

Difficult to have a bearish argument tbh. pic.twitter.com/At3D0tDWmk

- fil₿fil₿ (@filbfilb) January 30, 2020

He draws attention to the monthly chart on which the MACD indicator crosses the zero mark, confirming the change in the bearish trend to the bullish one.

Indicators on smaller timeframes also speak in favor of the bulls.

Weekly schedule

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Bitcoin broke out of the downward channel, which indicates the resumption of the rally from the lows of about $ 4,100, observed in early April 2019.

The breakthrough is backed by bullish MACD and RSI.

A weekly chart signals a rally to $ 10,350 (October high).

Daily chart

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On Thursday, Bitcoin defended support (the formerresistance) at $ 9188 dollars with a bullish absorbing candle. This strengthened the break of the previous day above this level and signaled the continuation of the rally from $ 8213 (January 24 minimum).

The momentum is still strong, as ascending 5- and 10-day moving averages show.

The cryptocurrency can test and possibly break through the resistance level above $ 9586 (November 4 maximum) and grow to $ 10,000 in the next few days.

4 hour chart

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On a 4-hour chart, the RSI showed lowerhighs (bearish divergence). As a result, a quick rollback to $ 9000 cannot be ruled out before the price moves to five-digit values ​​(based on the analysis of daily and weekly charts).

The outlook will remain bullish as long as prices hold above $ 8213. According to renowned analyst Josh Rager, the likelihood that Bitcoin will fall below $ 8,000 is quite small:

$BTC

How long are you bears going to stay bearish?

The downtrend is clearly broken on high time frame and if Bitcoin closes above $9557, that&#8217;s a higher-high

Sure, BTC could pullback but stop with the $ 5k calls until price breaks at least below $ 8k (if it even gets there again) pic.twitter.com/MHLuSQih6M

- Josh Rager? (@Josh_Rager) January 28, 2020

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