Why Tomorrow’s Monthly Close In Bitcoin Could Be Its Most Critical Yet

Tony "The Bull" Severino

5 years ago

3 mins read

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In financial markets, high timeframes are the most important when it comes to technical analysis and influence on the overall trend. The same is true for Bitcoin, and all eyes are on tomorrow’s January monthly candle close.

Depending on how and at what price point tomorrow’s candle closes, it could determine Bitcoin’s trend for the next year or more, suggesting that tomorrow night’s daily and monthly close could be the crypto asset’s most significant yet.

Bitcoin Monthly Close Is Most Critical Yet

Bitcoin may have bottomed in late December 2019 at a low of $6,400. It started the new year and January 2020 off with another test of $6,800 but has since rallied over 40% to over $9,500 at the current local high.

However, more upside appears to be ahead, especially if bulls can close tomorrow night’s monthly candle above $9,158, according to prominent crypto analysts FilbFilb.

A close above that level would be a new higher high on monthly timeframes, the first box checked that a new uptrend is forming. The second requirement is a higher low, which has yet to be put in yet following a higher high.

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

— filbfilb (@filbfilb) January 30, 2020

But that’s not the only bullish factor to consider, according to the analyst.

The MACD is crossing over the zero line suggesting that an uptrend is forming and picking up in strength.

Additional Factors Suggest Bull Run is Beginning

The analyst is among the most respected across the crypto industry, famously calling the price level of Bitcoin’s bottom based on miner cost of production, and recently called the local bottom at $6,400 based on this same metric.

However, there are even more bullish factors beyond what the analyst is pointing out. In addition to the MACD turning upwards, Stochastic, another trend measuring indicator, is also beginning to turn upward on monthly timeframes, as is the Relative Strenght Index.

Bitcoin is also holding above the mid-Bollinger Band, which could result in a retest of the upper band currently at $11,500.

If Bitcoin closes above even $8,500, it would be a confirmation of a morning star pattern based on Japanese candlestick formations, which is a powerfully bullish reversal structure.

All of these signs suggest that a new bull run is about to begin, but it all hinges on tomorrow night’s monthly candle close.

To say that the close is critical is an understatement, as it could be the deciding factor between a new bull market in 2020 or yet another year of bear market.

All eyes will be on Bitcoin price charts tomorrow night. Will the cryptocurrency close above $9,200 and signal a higher high on monthly timeframes? Let us know in the comments below.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.