Crypto News

Why Bitcoin’s 3-Day Candle Close Could Lead to a “Parabolic Advance”

Bitcoin is currently expressing intense signs of strength as its price pushes up towards the $12,000 region.

Although it has yet to breach this key level successfully, its strong overnight upswing does seem to indicate that a move higher is imminent in the near-term.

This strength is likely rooted in the bullish monthly close that the benchmark cryptocurrency was able to post yesterday. This was the first time in three years that Bitcoin was able to close its monthly candle above $10,700.

Many analysts are now noting that this may be one of the most positive factors currently working in the cryptocurrency’s favor from a technical perspective.

It also appears that this new development is already bolstering BTC’s mid-term outlook.

One analyst noted that Bitcoin just closed its 3-day candle above the upper boundary of its Bollinger Bands. The last time this happened, its price saw a parabolic rally that sent it surging from $5,000 to highs of $14,000.

Bitcoin Flashes Signs of Strength Following Incredible Monthly Close 

At the time of writing, Bitcoin is trading up just over 2% at its current price of $11,600.

Overnight, bulls were able to push it as high as $11,800 before it reached an insurmountable resistance region.

The selling pressure it faced here slowed its ascent and even catalyzed a slight rejection that led it down towards its current price levels.

That being said, it still remains caught within a firm mid-term uptrend, and slight pullbacks like this one are to be expected.

While zooming out and looking towards its macro price structure, it appears that the gains it has posted throughout the past couple of weeks are significantly bolstering its outlook.

One analyst explained that it is unreasonable to be bearish at the present moment after BTC posted such a strong monthly close.

“BTC HTF Update: Imagine being bearish, strongest monthly in 3 years,” he explained while pointing to the below chart.


Image Courtesy of Cactus. Chart via TradingView.

BTC Could Be Gearing Up for a Parabolic Push Higher

Another popular cryptocurrency analyst explained that Bitcoin’s three-day candle just closed above the upper boundary of its Bollinger Bands.

The last time it closed above this technical level, the cryptocurrency rallied from $5,000 to highs of $14,000.

“Bitcoin 3 day candle just closed, and the entire range was transacted above the upper BB – the last time that happened was April 4th 2019, right around $5000 before we made that run to $14000,” he said.

Image Courtesy of Cheds. Chart via TradingView.

The confluence of this technical development, coupled with Bitcoin’s strong monthly close, seems to suggest that BTC could be well-positioned to post notable gains during the second half of the year.

Featured image from Unsplash.
Charts from TradingView.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Inline Feedbacks
View all comments

Related Crypto News

The great unbanking: How DeFi is completing the job Bitcoin started
While most of us will prefer to forget the horrors of 2020, DeFi may well prove to be the...
US Banks Can Now Hold Reserves for Stablecoin Issuers, Says Federal Banking Regulator
The U.S. Office of the Comptroller of the Currency (OCC) on Monday published a letter clarifying that national banks...
Equilibrium receives Web3 grant to develop its universal DeFi module
Web3 Foundation has an established history of offering grants of up to $100,000 for groundbreaking technologies. Decentralized finance startup...
Earth needs Bitcoin as economy hits ‘debt saturation point’ — Keiser
Earth is reaching a historic “inflection point,” Keiser warns after Singapore’s central bank admits that more debt is not...
Global Hashpower Exchange Launches World’s First Exchange Dedicated to Hashpower Futures –
September 22, 2020 – Global Hash Power Exchange today announced the launch of, the world’s first crypto exchange...
Canada’s first regulated crypto exchange Wealthsimple Crypto goes live
Winklevoss brothers-founded Gemini powers the first regulated crypto exchange in Canada. Wealthsimple Crypto, the first regulated cryptocurrency exchange in...

Featured Crypto News

This On-Chain Indicator Looks As It Did Prior to Bitcoin’s 2017 Rally
On a macro scale, Bitcoin has yet to break out. Despite surging around 20% in the past 1.5 months,...
Daily Ethereum transactions hit a new historical high amid DeFi boom
The previous all-time high in daily transactions was recorded in 2018. Daily transactions on the Ethereum blockchain have just...
Ripple (XRP) Above 100 SMA Signals Fresh Increase: The Big Picture
Ripple is slowly moving into a positive zone above the $0.2480 support zone against the US Dollar. XRP price...
Technicals Suggest Bitcoin Looks Ready For Another Leg Higher Over $11K
Bitcoin price corrected lower, but it found support near the $10,750 zone against the US Dollar. BTC is currently...
Tether market cap increases almost 4X in 2020 to $15 billion
Tether supply surges to $15 billion but it could still be a house of cards The surging DeFi sector...
Scarily Accurate Analyst Thinks Bitcoin Will Hold $10,000, Triggering Strong Growth
Bitcoin has flirted with falling under $10,000 multiple times over the past week. If you take a look at...