The Bitcoin price continues to be stuck in a drawdown trend and broke below the $64,000 support at the start of this week. This move solidified the bears being in charge, thereby signaling the possibility of more sell-offs as investors move to avoid more losses. Amid the chaos, a major historical trend looks to be at risk of being broken. This has to do with the monthly close high of the previous cycle, a level that Bitcoin has now fallen dangerously close to.
Bitcoin Threatens To Break Previous Monthly Cycle High
Crypto analyst Mr. Anderson pointed out in an analysis posted on X that Bitcoin is now dangerously close to breaking the previous monthly cycle high. The interesting thing about this development is that with each cycle, the Bitcoin price has never closed a monthly candle lower than the previous monthly cycle high. What this means is that if this happens, it would be the first time in history, marking probably a new trend for the digital asset.
With the Bitcoin price skirting around $65,000, it is only $4,000 away from the previous monthly cycle high of $61,359. With the Bitcoin price still stuck in a downtrend and several days left before the close of February, the possibility of this previous cycle high breaking becomes higher.
In the post, the analyst shared the performance from previous cycles, showing there has never been a break of the highest monthly cycle close. If anything, this level has previously served as major support, often helping to mark the bottom before the next wave of rallies began. “If we close below it, it’s the first confirmed monthly cycle-level top-side breakdown in history,” Mr. Anderson explained.
There’s A First Time For Everything
In response to Mr. Anderson’s post, another crypto analyst, Crypto Feras, explained that the break could happen, explaining that there is always a first time for everything. One example given was the fact that the Bitcoin price had actually never fallen below its Weekly MA200. However, this was broken in the last cycle, marking a new era. “Now since monthly is a higher TF, it may take longer time to break its rule, which is one-extra-cycle on top of weekly MA200 rule break,” Crypto Feras added.
Acknowledging the possibility, Mr. Anderson opined that Bitcoin had actually fallen below the Weekly 200-EMA and 200-SMA previously before breaking the Weekly 200-MA. But as for breaking the monthly close high from the last cycle, it remains unheard of, making it a notable development if it happens.
Featured image from Dall.E, chart from TradingView.com
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