Bitcoin Generates Buy Signal Following Second Consecutive Green Monthly Candle
The Bitcoin price closed October with a 10% gain, marking its second consecutive green monthly candle. Analyst TradingShot indicated this trend as a positive investment signal for Bitcoin.
Bitcoin Triggers Buy Signal After Price Hit Second Green Month Candle
In a TradingView post, TradingShot noted that closing two consecutive green monthly candles typically signals a buying opportunity. Historical data suggests the market often rallies following this pattern.
During the 2021 bull run, Bitcoin experienced three straight green candles and an accumulation phase. The 2017 bull run also featured multiple green candles. This current market cycle resembles the 2021 pattern, with three consecutive green candles recorded from January to March earlier this year, followed by an accumulation phase.
TradingShot believes this trend indicates a potential third consecutive green candle in November. Historically, Bitcoin has shown positive returns most of the time after closing October in the green.
The outlook for November appears bullish, partly due to the upcoming US elections, which may provide market certainty and potentially drive Bitcoin's price higher. Economist Alex Krüger predicted a possible rally to $90,000 if Donald Trump wins, while noting a potential drop to $65,000.
Price Needs To Stay Above $69,000 In The Meantime
Analyst Justin Bennett stated that Bitcoin falling below $70,000 raises concerns, with $69,000 being the critical support level. If this fails, prices could drop to the $65,000 range.
Bennett expressed skepticism that previous equal highs near $73,700 will remain unchallenged but suggested retesting the $65,000 lows could occur first.
Analyst Ali Martinez emphasized the importance of maintaining above $69,000 for Bitcoin to attain a new all-time high (ATH), predicting a rise to $78,000 if this level holds.
As of now, Bitcoin trades around $69,700, reflecting nearly a 1% increase in the last 24 hours, according to CoinMarketCap.
Featured image from Forbes, chart from TradingView