This quarterly Bitcoin signal suggests a big move is coming in March
Bitcoin price action has historically been miserable in March.
Although seasonality suggests not expecting much this month, a quarterly bullish crossover could result in a massive rally before the month is over.
Bitcoin quarterly repeat points to more upside
While the market panics as Bitcoin clings to $22,000, higher timeframe signals could point to a surprise upside before the month ends.
In technical analysis, the higher the time frame, the more dominant the signal. Simply put, monthly charts trump weekly charts which are more important than daily charts.
Quarterly charts are often ignored because little action takes place for the entire 90 days. Three months pass between open and close, and it takes a long time for market conditions to change and candles to develop.
This also means that signals fire less often, but are much more meaningful. That’s why the latest signal on Bitcoin’s quarterly chart is so significant.
The 3-month candle could have more to climb | BTCUSD on TradingView.com
Stochastic suggests the beginning of a major recovery
Originally discovered by marketing psychology coach Christopher Inks, 3M Stochastic has crossed bullish after touching down on oversold conditions. In the past, this resulted in a massive bullish candle – much bigger than what has developed in Q1 2023 so far.
Bitcoin barely holds 30% of a 50% rebound from lows. Previous examples of this signal resulted in rallies of 117% and 246% the two times the crossover occurred. More importantly, each explosive quarterly candle started two years of bull market, with the lowest of the quarterly candle never being tested again.
Bulls are not completely safe, despite the strong signal of a possible trend change. Crossing bearish historically results in an equally powerful down candle, which can cripple any chance of a recovery for a while longer. Such a scenario has never happened before, but is not impossible.
How March closes means much more than just the monthly, it also means the fate of the quarter ending and possibly the confirmation of a new trend.
