Bitcoin price closed the historically red month of March not only in the green, but also with the largest dollar-for-dollar gain in the short history of the cryptocurrency.
Unfortunately, the quarterly candle that ended next to March also closed with a massive bearish signal in the first quarter of the year, despite the strong ongoing bull trend.
Bitcoin closes quarterly with record profits, but a bearish signal could not be avoided
Given that both of Bitcoin’s largest bull markets closed in the fourth quarter of each year, the first quarter is one of the worst quarters for the leading cryptocurrency by market cap.
Even in 2020, the quarter ended on a bearish bang that brought Bitcoin back below $ 4,000 before all was said and done. That year March came, but the bulls kept the month green and closed what is currently the biggest monthly candle in terms of the total dollar moved.
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The quarterly candle rose twice over the course of the month, adding more than $ 28,000 per coin to the price of the cryptocurrency. Despite the huge move, Bitcoin would have had to pump more than $ 20,000-30,000 more to avoid the first bearish divergence of the quarterly RSI.
The quarterly Bitcoin candle closed with the largest gain ever, but left a bearish divergence behind | Source: BTCUSD on TradingView.com
Relative Strength Index warns of a bearish second quarter of 2021 before the bull trend resumes
According to the Relative Strength Index, a measure of measuring trend strength, the current trend is less strong than the buying momentum that first brought Bitcoin to $ 20,000 – although it is currently trading three times as much.
A bearish divergence occurs when price movements and technical indicators move in opposite ways, revealing weakness in price movements.
The current high on the bull market is at $ 61,800 and if bearish divergence is confirmed, things could diminish for some time. However, the angry bulls cryptocurrency has shaken off almost every bearish signal since the fourth quarter of last year when the first breakout hit.
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A correction at current levels would likely be healthy for Bitcoin and would bring more interest and demand to the market, with more supply being able to be bought overall.
However, Bitcoin never closed more than five consecutive quarterly green candles, and the final close was the fourth. If the current quarterly candle closes green, the chances are good that Bitcoin will do the best.
However, if things close in red, once a short-term correction is out of the way, the bull run could have a full year ahead of the bullish trend.
Featured image from Deposit Photos, Charts from TradingView.com