Bitcoin hits second-highest monthly close to date - near the $ 14,000 barrier

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Bitcoin hits second-highest monthly close to date - near the $ 14,000 barrier

The bitcoin trades on that day just below 13,800 USD, slightly below the level achieved at the weekend highs of 14,100 USD. While the top cryptocurrency appears to be recovering above the important resistance area, all eyes are on the development of the legacy markets in the coming days. This is a scenario that is likely to impact the crypto cart as risk aversion hits traders in the traditional market.

After battling a slight sell-off last Friday, BTC / USD dropped below $ 13,000, the pair hit its best price level in over two and a half years. The last time Bitcoin traded at highs of $ 14,000 was in January 2018.

Hence, analysts point to the level as the main obstacle for the Bitcoin to see a new bull run. That run would take the award above the 2017 all-time high of $ 20,000. The technical outlook is also broadly bullish as the price hits new highs in the weekly and monthly candles in both cases. Bitcoin closed at $ 13,816 in October. It was the first time it closed higher since BTC / USD began falling after peaking in December 2017.

The optimistic Bitcoin outlook is also strengthened by the price movement in the daily chart. As can be seen below, the likelihood of another explosion upwards remains. Because the daily candlestick encloses the upper limit of bullish diverging Bollinger bands.

The picture suggests that the bulls are likely to remain in control if they buy on declines and send the price back above the immediate barrier at $ 14,000. Again, a weekly closing price above this hurdle could increase buying pressure and encourage the urge to make more profits.

However, as we have already pointed out, the short-term technical picture also shows a fractal pattern. This could suggest that the bears are not being left out. According to the pattern, BTC / USD is likely to see a significant drop in price near $ 12,000 before resuming the uptrend to the new all-time high.

The top price levels for this week are $ 14,000-13,800 and $ 13,800-13,000. Staying at or breaking above the former will keep the Bitcoin uptrend going. Pulling back below the ceiling of the latter would put more selling pressure and lower prices.