Bitcoin’s Monthly Price Gains Already Highest Since November 2017

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  • Bitcoin hit a fresh 10-month high of $8,335 on Bitstamp earlier today and is currently reporting its largest monthly gain since November 2017.
  • A bearish divergence of the hourly chart relative strength index and overbought conditions signaled by longer-duration RSIs indicate scope for a pullback to $7,400.
  • A rally to $8,500 could be seen in the U.S. trading hours if BTC invalidates the above bearish chart pattern with a move over $8,335.

Bitcoin (BTC) clocked fresh 10-month highs earlier today and currently appears on track to post its largest monthly gain since late 2017.

The cryptocurrency market leader rose to $8,335 at 08:00 UTC on Tuesday, the highest level since July 25, according to Bitstamp prices.

As of writing, BTC dropped back slightly to $8,000, but that still represents 51.5 percent gains on the monthly opening price of $5,267.

It is worth noting that the last time the cryptocurrency chalked up over 50 percent monthly gains was during the height of the bull market in 2017. Prices rallied 54 percent in November 2017 on speculation that the launch of BTC futures on major U.S. derivative exchanges would open the doors to institutional money in the crypto space.

So, as long as prices close May above $7,350, the monthly gain would be the highest since November 2017.

Monthly chart

  • As seen above, BTC rallied by 65.78 percent and 54.6 percent in August and November 2017, respectively.
  • The month-to-date gains seen at press time are the highest since November 2017. The monthly gain, however, would be the biggest since August 2018 if the price settles above $8,150 on May 31.
  • If BTC ends May below $7,347, the monthly gain would be the highest since December 2018, when prices rallied 39.5 percent.

With long-term technical studies biased bullish, the cryptocurrency looks set to post its best monthly gain since August 2017.

The recent rally, however, is looking overstretched on the short-term charts. So, a price pullback and a monthly close…

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