Bitcoin enters the bull market before the Chinese New Year

Bitcoin enters the bull market before the Chinese New Year

Bitcoin has entered the bull market and will soon test the $ 10,000 bar, as technical analysis shows, although some investors fear that the New China Year might change the trend.

Before the Chinese New Year’s Feast – which begins today – the Chinese and South Koreans change the bitcoin to fiat – they usually want cash on holidays – and the bitcoin tends to fall before the event.

This year, traders are especially afraid because the bitcoin had great difficulty in raising convincingly over $ 9,000. From February 10, Cryptocurrency was somewhere between $ 8,000 and $ 9,000, as the price index shows. However, historical data shows that it is very likely to see traces of the bull market and the bitcoin have some increase this month.

The January moon was a good month for bitcoin during 2012-2014. Performance has always been quite different from year to year in February.

However, some clever habits have emerged since 2015 – bitcoin decreases in January and rises in February.

The 26% drop since January this year is the biggest monthly collapse in 2015 so far. If we take the history of the last three years, cryptocurrency could grow again this month.

If we study the technical charts, the bitcoin had a reversible structure on the bull market today.

The graph above (prices on Bitstamp) shows:

A head and shoulder break – a bull reversal structure, indicating a trend shift in the bears market.

The preceding four hour candle closed above the neckline, confirming a higher breakthrough. By the height measurement method, the punch opened the doors for a rally of at least $ 11,000.


Historical data show that February is good for bitcoin.

The short-term technical study shows the bull market, and the bitcoin has the potential to grow to $ 11,000.

However, as we discussed at the beginning of the week, increases of more than $ 10,000 may be passing.

The pessimistic scenario – if it fails to take advantage of the head and shoulder structure, followed by a daily closing below $ 7625 (the minimum of February 2), then we could see a deeper liquidation at $ 6000-5900.

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