Bitcoin has had its most profitable quarter on record dollar for dollar, rising more than $25,000 in Q1 alone. But despite the enormous bullish impulse, the price action has left behind the first ever bearish divergence on quarterly timeframes in the asset’s history.
Making matters worse, March is historically be worst month on record for the top cryptocurrency over the course of the last ten years. Could the bearish signal combined with this factor result in a much more sizable correction across crypto?
Bearish Divergences Stack Against Bitcoin On Quarterly Timeframes
2020 was the year of the pandemic, and the year of Bitcoin. During that time, Bitcoin price spent the first three quarters of the year ranging between $4,000 and $10,000, but once that range was finally broken towards the end of the year, there were fireworks come Q4.
Q4 is traditionally a time for enjoying the fruits of one’s labor with Thanksgiving and other holiday celebrations, and this year was especially fruitful for investors who weathered the long crypto winter.
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With an unprecedentedly negative year in the rear view, the exuberance of the celebrations have carried well into Q1 2021, and taken Bitcoin to its best quarter ever in terms of total dollars gained.
Q4 resulting in a stunning $18,000 added to the price per BTC, while in Q1 2021 alone, there’s already been another $28,000 added to each