Coinbase taps Centrifuge as preferred tokenization backbone, takes equity stake
Coinbase chooses Centrifuge as its tokenization backbone and invests in the firm.
CoinDesk1 min read
Bitcoin Closes 2 Green Monthly Candles: Here’s What Historical Data Says Is Coming Next
TL;DR
Bitcoin has closed two consecutive monthly candles in the green, but historical data suggests it may close this month in the red. Analyst Max indicates that unless this bear cycle is different, further downside is likely.
Key points
- Bitcoin closed two consecutive monthly candles in the green
- Historical data suggests a likely red month ahead
- Analyst Max highlights the potential for further downside
Crypto analyst Max has cited historical data to provide insights into what could be next for Bitcoin, noting that it has closed two consecutive monthly candles in the green. Based on this historical data, BTC may be heading for a red month, except if this bear cycle turns out to be different.
Bitcoin Expected To Close This Month In The Red After Two Monthly Green Candles
In an X post, Max stated that there has never been a bear market where Bitcoin printed more than two consecutive monthly candles. He noted that BTC closed March and April in the green, with gains of 2% and 12%, respectively. As such, the analyst remarked that this month is likely to close red unless this cycle is different from every previous one.
Max also mentioned that further downside remains, given the higher probability that May is a historically weak month and a large amount of liquidity is sitting below. However, it is worth noting that Bitcoin is already up almost 6% this month, rising to a multi-month high of $81,000 today. This has provided optimism that the bull market may be back with BTC targeting new highs.
Source: Chart from Max on X
The analyst commented on the current Bitcoin price action, indicating that it is still bearish despite the recent rally. He noted that on the first two attempts to break above the $79,000 resistance, a clear rejection followed. Now, on this third attempt, price has managed to break above but quickly lost momentum and closed back below the resistance.
Q&A
What does it mean for Bitcoin to close two consecutive monthly candles in the green?
Closing two consecutive monthly candles in the green indicates that Bitcoin's price has increased over two months, which is often seen as a positive trend.
Why is May historically considered a weak month for Bitcoin?
May is historically considered weak for Bitcoin due to past market trends where the price has often declined during this month.
What are the implications of Bitcoin potentially closing this month in the red?
If Bitcoin closes this month in the red, it could signal a continuation of the bear market, impacting investor sentiment and market dynamics.
