Bitcoin - Monthly Chart Gives a Positive Outlook

I posted market overviews for Bitcoin using different timeframes. You can find these posts in the related ideas. Please read them to have a better understanding of possible market movements.

This time I would like to use the monthly timeframe just in order to provide trading ideas for long term trading.

The price reached the support zone formed by 3000.00 support level and SMA with period 50. The bullish candle tells us that the market saw this zone and it could stop the falling. The market bounced from this zone, and it's a very positive signal for the buyers. After that, the market moved sideways. The combination of the candles can be used for confirmation a possible trend reversal if we can consider that we have the bearish trend on the monthly timeframe. I think it's better to think that the monthly timeframe keeps the uptrend and the falling from 20000.00 levels it is just a correction movement - the very deep correction movement. If so, the reversal from the support zone means that the market is going to continue the main uptrend.

If we look at the indicators:
- RSI did no reach the oversold zone even we had a very strong falling. It tells us that the market still has some potential for downward movement
- MACD lines confirm the downward movement but it's normal. Because MACD lines provide lagging signals and we need more time for getting bullish signals from the lines
- MACD histogram started moving upward. This is a solid signal confirming the price reversal from the zone and the upward movement
- DMI stays bullish (that is another reason why I think the market still is in the uptrend and the falling is just the correction movement). ADX line falls, and it tells us that we have the correction in the trend market.

The monthly chart looks interesting for opening long positions in the long run. The current price can be used for buying or we can place pending orders for buy above the highs of the local candles. It's 4200.00 level. If the price moves above this level, we will get a signal confirming that the price is going to continue the uptrend.

If the price can break the support zone at 3000, we should be ready to get a fall to the lower key level at the 1000.00 support. But such falling probably will close the "Cryptomarkets" project. Why do I think so? When the flagship market (BTC) of the cryptocurrency markets drops by 95% - we cannot talk about the crypto markets as being a solid component of the financial world.



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