Price dynamics are increasing: is Bitcoin traditionally preparing for a price rally in February again?
Price dynamics are increasing: is Bitcoin traditionally preparing for a price rally in February again?
During their short lifespan of ten years, Bitcoin prices have traditionally seen better months than others. February has always been a month for the bulls – so is history repeating itself in 2020?
Bitcoin price momentum is increasing
The Bitcoin price has continued to build on the weekend dynamics and has increased again today. According to Tradingview.com, BTC has been pumped around $ 500 in the last 12 hours – from $ 8,650 to $ 9,150.
The 6 percent increase is based on the momentum of the weekend, which many attribute to the negative news about the Chinese coronavirus outbreak.
It is true that the Asian stock markets fell along with the Chinese yuan, which is usually a positive sign for Bitcoin.
However, analysts like Josh Rager see nothing unusual in the BTC markets.
The coronavirus is almost becoming click-bait for crypto content creators
The short answer- $BTC has made no abnormal price changes during the recent panic waves though stocks in China have taken a significant hit
BTC is still ranging between $8k to $9200
— Josh Rager 📈 (@Josh_Rager) January 27, 2020
BTC prices are now back at their multi-month resistance level and must rise to around $ 9,700 where the next barrier is.
Rager adds that the monthly candle looks very strong and, if the momentum continues, could lead to an increase to a five-digit amount.
Good looking candle on the monthly chart, looks like it wants to overtake the Nov. open
It would be extra bullish if this month closed above $9250
Price would likely look to push up over $10k and re-test the POC of the June to Sept '19 pic.twitter.com/Hxl5yZys7Y
— Josh Rager 📈 (@Josh_Rager) January 28, 2020
On the low side, BTC could return to support at $ 8,600 or $ 8,300, but a break in the $ 7k zone could wipe out recent momentum.
The February feeling
Crypto and forex chartist Alessio Rastani looked at the month’s picture and found that February is usually a very strong month for Bitcoin.
Interesting chart of how #Bitcoin usually behaves from January to July. Notice how February is usually the STRONGEST month in this period – a positive month. Sadly the sample size is small. Do you agree with the chart that Feb might be good for BTC? pic.twitter.com/QgOVGQ5tuv
— Alessio Rastani (@alessiorastani) January 27, 2020
This could be the case again if the story rhymes with February. But if you consider that the January annual figures are usually bearish and that this month there has already been a 27% increase, the opposite could also happen.
Observation of the quarterly results for the past six years shows that the first quarter declined in four of these years, with gains only in the first three months of 2017 and 2019. Q2, on the other hand, was the best period of the past six years apart from 2018.
Bitcoin’s safe haven status is reinforced by two separate incidents that led to simultaneous BTC and gold rallies. If you take into account the dynamics that Bitcoin’s halving planned for May will trigger in the next few weeks, the prices are quite optimistic.
