Today is September 30th, and while almost only the last day of the month is marked for Bitcoin, this is an incredibly critical monthly candle close.
The very first cryptocurrency is re-testing a major level of resistance that supports support in monthly periods, and a strong hold could be confirmation of a bear market breakout. Here's the exact price Bitcoin needs to close tonight for September to be a month to remember for a long time.
Bitcoin Monthly Close is Random Critical Resistance Flipped Support Retest
In technical analysis, support and resistance are among the most important factors to look out for in order for volatile price action to occur. This is where rejections or setbacks take place, or if the prize gets through, an explosive outcome follows.
For example, when the cryptocurrency finally plowed through $ 10,000, it quickly traded for well over $ 12,000. There the Bitcoin price was rejected and forced to retest the previous resistance as support before removing it higher.
Related reading | Bitcoin is about to make its crucial quarterly close
It is not clear why the markets work this way, but retests of resistance support are common. The bears' failure to push prices back below previous resistance levels gives the bulls confidence to push prices higher.
Bitcoin's monthly close is one of the most important re-exams for high timeframe resistance that has been supported throughout its short history. If the cryptocurrency can close above this key resistance level, there will only be one left before another crack is next at breaking $ 20,000.
The price that Bitcoin bulls have to beat tonight is clearly $ 10,750.
BTCUSD Monthly Resistance / Support Flip Retest | Source: TradingView
Why this month-end closing in September is so crucial for the continuation of the crypto uptrend
If Bitcoin loses $ 10,750 tonight for whatever reason, that's not all for bulls. The cryptocurrency could very well stay above another level of support - meme downtrend resistance from all-time high.
Resistance and support can be diagonal, as well as horizontal. It's also available in rounded numbers like $ 10,000 and $ 20,000, or in number sequences like $ 6,666.
BTCUSD Monthly Downtrend Meme Trend Line Retest | Source: TradingView
This diagonal resistance level also coincides with another important monthly resistance level from the first phase of the bear market. This bearish block is on top of a long-legged doji that was where the V-shaped low of February 2018 occurred.
Related reading | Bitcoin descending triangle suggests third downtrend before the end of the bear market
Bitcoin closed higher this month, but not again until 2019. Now it's about that again. The cryptocurrency is currently trading at around $ 10,750, but if the carpet is somehow pulled and the cryptocurrency falls below $ 10,100, an evening star pattern will be confirmed.
BTCUSD Monthly Possible Evening Star If Close Below $10,100 | Source: TradingView
An evening star pattern is a bearish Japanese reversal pattern for candlesticks. A close like this tonight would indicate another dip into a downtrend, while a strong close above it could confirm an uptrend.
However this evening ends, it should be an unforgettable September.
Featured image from Deposit Photos, Charts from TradingView