Bitcoin Breaks Record For Highest Monthly Close Ever: What’s Next?

Bitcoin price closed October 2021 above $61,000, making it a higher high monthly close and the highest monthly close on record all in one. In the past, breaking such a record has had spectacular results.

With another record now broken, here is a preview of what could be coming across the cryptocurrency market, if history can be used as a guide. Just remember, past performance does not guarantee future results, and when it comes to crypto, anything is possible.

Recapping The Record-Breaking Monthly Close

When Bitcoin price broke down from the highs set back in April of 2021, the market went into a panic and immediately began to fear that a bear market had started and the bull run ended far short of most expectations.

The news cycle turned negative, price action turned bearish, and prices began dropping hard. But Bitcoin eventually bounced, the news cycle resumed its positive momentum, and the cryptocurrency market correction started to show signs it was ending.

More and more players began getting into the crypto industry, and the big news arrived when a Bitcoin ETF was approved in the United States by the SEC. The news took Bitcoin price to a new all-time high, but the cryptocurrency then began to fall rather than blasting off with a renewed momentum.

Now, a double top narrative is brewing, but the monumental Bitcoin monthly candle close points to new all-time highs instead.

What Is Next For Bitcoin Price Action?

In the past, every single time that Bitcoin price has closed above its former monthly high, it has gone on to set another new record. In no instances did a new bear market begin.

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At the same time as all of this goes on, the closing price on the Bitcoin monthly chart was also enough to send several technical indicators into overdrive, such as the Relative Strength Index, Money Flow Index, and more.

In fact, there are dozens of monthly technical indicators all with bullish signals. Everything from the Williams Alligator to the Average Directional Index suggest that this trend is strong and strengthening again for a finale.

In terms of the final target for when it is all said and done, they can range as widely as the bear market calls for $20K lower did just a couple months ago. Now, targets are pointing to at minimum $100,000 per BTC, but projection can reach hundreds of thousands per coin this cycle, depending on which analyst you hear from or what model is used.

What Happens With Altcoins?

With a new all-time high in Bitcoin, altcoins have also started to break their recent records on the daily and monthly timeframes. Ethereum has already set a new all-time high, and the rest of the market is beginning to rise.

When Bitcoin starts to reach prices of $100,000 the average person won’t be able to afford very many, if at all even one coin. This will push retail money into cheaper altcoins, like Dogecoin, as the trend has already shown.

But when Bitcoin is at $100,000 and in full blown mania, the search for the next Bitcoin in altcoins will be that much stronger. Altcoin season during the current cycle might not have properly even begun, compared to what could soon be ahead in the crypto market.

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Currently, Bitcoin dominance, a metric that weighs the cryptocurrency’s market cap against all other altcoins, is showing that the strength of the altcoin trend hasn’t yet reached the strength of the last cycle, according to the RSI.

The Macro Environment Supporting Price Growth

All of these bullish events for Bitcoin and altcoins are happening during a time when the world is starting to fall apart, from the failing fiat system that has underpinned all of finance for nearly a hundred years.

The global reserve currency is failing to support its enormous responsibility, and those that were responsible for setting policy around the dollar, have let greed put the economy at risk. If fiat currencies fail and collapse, cryptocurrencies could skyrocket out of control not because their own value is rising, but because their value priced in dollars is plummeting.

The result could be a dramatic finish to the cryptocurrency market cycle and bull run.

How To Hedge For The Potential Cycle Finale

Altcoins are destined to continue to rise by thousands of percent before the climax to the market cycle is finally here. Because these assets move with such strength, when buyers disappear and selling begins, these assets often crash by as much as 99% to their bottoms.

As lucrative as a bull run can be, a bear market can be incredibly profitable as well, especially if you happen to go short at the very top of the uptrend. It isn’t an easy feat to pull off, but fortunes aren’t made without any sort of risk or effort.

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With Bitcoin trading platform PrimeXBT, traders can go long or short at any time, even simultaneously for hedge positions and the most flexibility over a trading strategy. This could let a trader stay in their long trade until the very top, then open up a short and set the long order’s stop loss in profit and let the market decide the rest.

At the start of the article, many of the bullish signals that were referenced on monthly timeframes are also signals that the top is almost near, and in a sense are a signal that the bear market is coming. The ADX referenced suggests that Bitcoin has never really had a bear market on high timeframes, and that could be what is eventually on the way: The worst bear market in cryptocurrency history.

Even Bitcoin tends to crash by at least 80% or more when the bear market starts. The only way to have an idea of where the bottom might be, is to first find out where the top is – something that the market could only be months away from finding out.

Veronica Tucker

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