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10 Bullish Monthly Bitcoin Price Charts To Start November

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Bitcoin price closed the month of October with a higher high on the candle closing, a feat that has throughout history always led to a renewed bull run and additional all-time highs.

Coinciding with the November monthly open, here are ten bullish Bitcoin price charts that suggest bullish continuation is ahead – but also warns that the eventual end to the market cycle is near as well.

Ten Bullish Monthly Bitcoin Price Charts

The leading cryptocurrency by market cap has made a higher high on the highest timeframes – a clear signal that the trend has yet to conclude. By pure definition, an uptrend is a series of higher highs and higher lows. The two boxes have been checked by Bitcoin, and it is time for the market to respond.

Below you’ll find ten monthly Bitcoin price charts and the bullish factors they exhibit. For all of the bullish technicals, there are two important things to note. When the move ahead appears this obvious and the crowd expects it to happen, the market often does the opposite. Also, such overheated monthly technical indicators – as bullish as they may be – signal the end is also near.

Relative Strength Index (RSI)

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The Relative Strength Index measures the strength of an asset’s underlying price action and can tell analysts when an asset is overbought or oversold. A reading of under 30 suggests conditions are oversold – something that’s never happened on monthly timeframes when trading the first ever cryptocurrency.

Above 70 typically suggests an asset is overbought and its time to sell. But on monthly timeframes in Bitcoin, this only has indicated in the past when FOMO is at the highest, and buying is in a frenzy. There is no telling when the top might form based on the monthly, only that a peak is near and will happen closer to the previous RSI top set back in April this year.

Ichimoku

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The Ichimoku can be a confusing tool to look at if you don’t know how to read it. But in the right hands (or with the right set of eyes), the tool gives the clearest signals of all. Note how the lagging span, projected backward behind price in green – which is used to highlight support and resistance – set a higher high similar to the 2013 mid-cycle peak. The 2013 finale or the 2017 cycle top did not.

Bitcoin price is also above both the conversion line and the base line, which is a bullish signal in and of itself. These lines are also crossed bullish, and the cloud has a tiny bullish twist suggesting a short pulse of bullish momentum ahead.

Parabolic SAR

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Before we get into more complex signals and technical indicators, we’ll stop (pun intended) quickly at the Parabolic SAR, created by J. Welles Wilder, one of the pioneers of technical analysis.

Related Reading | 4 Tips for New Bitcoin Investors – Crypto Bite

SAR stands for “stop and reverse” and it tells an analyst when a trend has done so. Notice that at the mid-cycle peak in both 2013 and 2021, the rally then restarted after just four months of downtrend according to the Parabolic SAR.

Fisher Transform

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The Fisher Transform is a tool that normalizes price movements to filter out noise and make points of reversal or price extremes easier to spot, based on standard deviations.

The mid-cycle pullback in Bitcoin price happened to reach the same standard deviation as the 2013 bull cycle, a level that also briefly held as support in 2017. A bearish divergence with a lower high on the indicator while price pushes higher would be a signal that the bear market is here.

Keltner Channel

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No, these aren’t the Bollinger Bands, but the Keltner Channel is another volatility tool that, according to Investopedia, is designed to aid in trend recognition and spotting reversals.

The biggest factor suggesting a climax to the cycle is on the way, is the lack of the bottom band falling out as it has on past cycles when they’ve come to a conclusion. The market hasn’t seen anything yet in terms of volatility this cycle.

Super Guppy

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This ribbon made of exponential moving averages (EMAs) makes it very clear when an asset is trending up. On the monthly timeframe, that’s pretty much been the only direction the cryptocurrency has ever known.

However, there is zero compression of the ribbon as past bear phases have shown, and Bitcoin price has closed a monthly candle above all of the EMAs signaling a strong trend is forming.

Williams Alligator

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The Williams Alligator was created by early market psychology pioneer Bill Williams. It consists of three smoothed moving averages based on the Fibonacci sequence: 5, 8, 13. The three averages are called the tool’s Jaw, Teeth, and Lips.

The tool currently shows that the Alligator is feeding into the trend, with the moving averages diverging and moving upward – a clear sign of continuation.

Awesome Oscillator

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The Awesome Oscillator is awesome because it gives simple signals. The momentum measuring tool can help to affirm trends and preempt market reversals, according to MoneyControl.

The histogram adding two green ticks as the price moves upward is a sign that the cycle hasn’t likely concluded, and is about to get a lot more awesome.

Donchian Channel

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Another Bollinger Band lookalike, but this one works very differently. The Donchian Channel is based on Bitcoin’s Average True Range, and is depicted by the lower and upper bands. The middle-line is the market median, or what is likely a fair price for the cryptocurrency.

Passing above or below the media indicates the direction of the trend, which is still headed up. Confirming this further, is the fact that the upper and lower bands are starting to move up, showing that the Average True Range of Bitcoin is forever moving away from low prices set at the bear market bottom.

Money Flow Index (MFI)

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The Money Flow Index signals when an asset is overbought or oversold similar to the RSI, but also takes into consideration volume data.

The addition of volume makes finding divergences easier. Comparing to the RSI at the top of the article, the second top of the 2013 double top on the indicator is significantly truncated on the MFI. The short, sharp spike was impactful during the 2013 finale, and could suggest that there isn’t much time left in the current bull cycle.

(Cycle) Conclusion

There are a lot of bullish signals in Bitcoin price action currently on the highest timeframes. Elliott Wave Theory also has provided the roadmap for a potential wave 5 situation. However, the macro situation is bleak, and the cryptocurrency asset class remains speculative and ultra sensitive to things like regulation or Black Swan events.

There is also no telling where the music stops. Bitcoin price could fall short of expectations of $100,000 or higher, causing a sharper selloff and more severe bear market. The cryptocurrency could blast far past that barrier and then some. What is guaranteed, is that what goes up, must come down, and after the bull cycle parabola breaks down completely, the leading cryptocurrency by market cap is likely looking at around an 80% drop to the bottom.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

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Bitcoin

Blockchain and Artificial Intelligence

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Artificial intelligence (AI) was introduced in 1955 by John McCarthy

Artificial intelligence (AI) is the ability of a computer program to think, learn and mimic human thought. Introduced in 1955 by John McCarthy, artificial intelligence has several different fields of study. These fields include computer science, mathematics, psychology, and philosophy, among many others. AI is linked to several different use cases. The most prominent use cases include machine learning, supply chain optimization, speech recognition, self-driving cars, and manufacturing optimization.

Now we know a bit about AI, let’s review a few examples of how AI is improving decentralized networks like blockchain.

Cryptocurrency Trading

During the past few years, artificial intelligence has substantially increased its presence in the area of crypto trading. This is particularly true with high-frequency trading (HFT). Essentially, HFT is a type of algorithmic financial trading characterized by high speeds and high turnover rates. High-frequency trading is a perfect vehicle for cryptocurrency trading because the crypto universe has several different exchanges.

HFT uses artificial intelligence to analyze multiple technical indicators across various exchanges in an effort to take advantage of market opportunities. AI is still in its infancy stage in regard to crypto trading. Going forward, artificial intelligence will play a pivotal role within the crypto trading community. These are commonly known as trading bots.

Suggested Read: What Are Public, Private, and Consortium Blockchains? – Cryptobite

Blockchain Security

Unfortunately, industries that find themselves in a hyper-growth phase are more susceptible to cyberattacks and malware. Without question, blockchain technology, along with digital assets, is currently experiencing an explosive rate of growth. Consequently, the blockchain industry has endured an exponential increase in malware, phishing, fraud, and digital theft. Based on data provided by industry experts, $9 million is lost to cryptocurrency scams on a daily basis.

The key to successfully thwarting a blockchain hack is to identify the threat and understand the nature of the attack as quickly as possible. Hackers are acutely aware that they must strike quickly in order to launch a profitable attack. Unfortunately, crypto exchanges have a poor track record in preventing cyber-attacks. AI-based cybersecurity systems are designed to detect a hack in real-time and dramatically increase the likelihood of stopping the attack. AI systems are far superior to traditional cybersecurity systems because AI has the ability to detect patterns from previous attacks. This information can be used to prevent future cyber threats.

Bitcoin Mining

As you know, all crypto transactions are verified and added to the blockchain by Bitcoin miners to maintain the integrity of the network. In exchange for their work, miners are rewarded with Bitcoin. Crypto mining requires energy consumption and computing power. Over the past few years, Bitcoin miners have explored the idea of using artificial intelligence to reduce energy waste and computing power to reduce costs.

A few of the largest mining companies have created AI-based systems, allowing companies to share power and increase profitability. AI algorithms have made crypto mining faster, more profitable, and more efficient. Without question, artificial intelligence will continue to play an essential role throughout the crypto industry.

Brief Summary of Blockchain and Artificial Intelligence

Artificial intelligence (AI) was introduced in 1955 by John McCarthy

  • AI is the ability of a computer program to think, learn and mimic human thought.
  • AI encompasses several different fields of study.
  • AI has increased its presence in cryptocurrency trading.
  • High-frequency trading uses AI to analyze technical indicators across many exchanges.
  • AI-based cybersecurity systems are designed to detect a hack in real-time.
  • Bitcoin miners use AI to reduce energy consumption and computing power.
  • A few of the largest mining companies have created AI-based ecosystems.
  • AI algorithms have made crypto mining faster, more profitable, and more efficient.
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Bitcoin

What Is Blockchain Consensus Algorithm?  

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What Is Blockchain Consensus Algorithm

Blockchain technology has many different moving parts. Hence, to operate smoothly, the architecture must be properly designed. An important piece of Nakamoto’s architectural design is the use of a consensus algorithm. 

Blockchain Consensus Algorithm in a Nutshell

In its simplest format, a blockchain consensus algorithm is a decision-making process. It is designed to assist in reaching a common decision by a group of people. Of course, in this particular scenario, the consensus algorithm involves blockchain-related solutions.

How Does it Work?

Let’s assume that 20 co-workers are asked to collaborate and offer a recommendation on a specific project. Each participant in the group will reach a decision that will provide the greatest individual benefit. The group must listen to each recommendation and decide which of them will provide the greatest overall benefit. The final recommendation must be accepted by all group members regardless of whether it offers the best solution for each individual.

Let’s assume that 20 co-workers are asked to collaborate and offer a recommendation on a specific project. Each participant in the group will reach a decision that will provide the greatest individual benefit. The group must listen to each recommendation and decide which of them will provide the greatest overall benefit. The final recommendation must be accepted by all group members regardless of whether it offers the best solution for each individual.

Suggested Read: Luxury Fashion Brands Are Entering The Crypto Space (cryptobite.io)

Brief Summary of Blockchain Consensus Algorithm

  • An important piece of blockchain architecture is the use of a consensus algorithm.
  • It is a decision-making process that helps a group of people to make a common decision.
  • The consensus algorithm always produces the optimum solution for the overall group.
  • A consensus algorithm helps to create fairness and equality in a decentralized ecosystem.
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Bitcoin

What Is Lightning Network?

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what is the lightning network

The Lightning Network is a solution designed to solve the problem of transaction speed on the Bitcoin blockchain. It was introduced in a white paper by Joseph Poon and Thaddeus Dryja in February 2015.

Problems With Bitcoin

When Bitcoin was launched in January 2009, transaction speed was not a major concern. In fact, for the first eight years of its existence, it operated quite well. As Bitcoin entered a raging bull market in 2017, it became abundantly clear that transaction speed was becoming a major detriment to the long-term sustainability of the crypto network.

Some experts believe that Nakamoto poorly designed the process for validating transactions on the blockchain network.

As we discussed in previous sections of Blockademy, a consensus algorithm known as proof of work (PoW) is used to validate Bitcoin transactions. Unfortunately, PoW can be a slow and cumbersome process. The transaction processing capacity is limited in terms of size and frequency.

The average block creation time is 10 minutes, and the block size is limited to 1 megabyte. Therefore, the average time to process a transaction on the network is three to seven seconds.

Lightning Network Solution

Lightning Network was never intended to replace PoW. It is used to reduce the burden on the Bitcoin blockchain. The key ingredient of the Lightning Network is the fact that all transactions occur off-chain.

It operates on top of the Bitcoin blockchain known as a ‘layer 2’ protocol. By adding another layer to the blockchain, it enables users to create payment channels between any two parties. These payment channels have no expiry, allowing both parties to conduct multiple transactions.

When all activity between the two parties completes, the information is transferred to the main network. All transactions between the two parties are recorded as a single transaction on the Bitcoin blockchain for efficiency.

A large portion of the Bitcoin community has never endorsed the Lightning Network because transactions occur outside of the main blockchain. They argue that decentralization is being compromised each time a transaction is conducted off-chain.

Even though the Lightning Network has not been well received by the entire Bitcoin community, it holds a great deal of promise in terms of solving Bitcoin’s scalability problem. Therefore, the network will continue to play an important role in managing Bitcoin’s ever-increasing volume of transactions.

Brief Summary of Lightning Network

  • Lightning Network is designed to solve the problem of Bitcoin transaction speed.
  • It was introduced by Joseph Poon and Thaddeus Dryja in February 2015.
  • In 2017, transaction speed became detrimental to the long-term viability of BTC.
  • Lightning Network removed some of the burden from the Bitcoin blockchain.
  • All transactions on the Lightning Network occur off-chain.
  • The transactions occur outside of the Bitcoin blockchain network.
  • The Lightning Network is known as a ‘layer 2’ protocol.
  • Many Bitcoiners believe that the Lightning Network reduces decentralization.
  • They argue that off-chain transactions compromise decentralization.
  • Overall, the Lightning Network is still very popular within the Bitcoin community.
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