Bitcoin has now entered maybe one in every of its most bearish durations ever. The cryptocurrency which has held up fairly properly by means of the entire market scandals is seeing much more dangerous information forward. Previously, it has seen a superb variety of consecutively purple closes which have solidified its entrance right into a bear market. However, this time round, it appears that evidently the digital asset is prepared to set one other file, however this time for the more severe.
Seven Red Candles
Anyone that has been following the market just lately is aware of that Bitcoin has been seeing a number of consecutive purple closes. This has not been a trigger for alarm although for the reason that digital asset has a historical past of marking bearish traits like these and nonetheless popping out on prime. But this may show to be a development like no different after the cryptocurrency had seen its seventh consecutive purple shut.
Related Reading | Bitcoin Recovers Above $30,000, Has The Bottom Been Marked?
This would make it the primary time in historical past that bitcoin is marking such a development. However, what is much more vital is what seven consecutive purple candles imply for the cryptocurrency. With the digital asset nonetheless being a vendor’s market, a detailed like this might set off much more sell-offs as buyers fear about the way forward for the coin within the quick time period.
Furthermore, with so many purple candles exhibiting on the charts, it might point out that there is extra downtrend left to comply with. An instance of this was marked within the 2014 bear market that noticed bitcoin file 4 consecutive purple closes. What had adopted was a single inexperienced shut that may show to give method to an much more brutal downtrend. Now, if bitcoin have been to mirror this transfer from 2014, then one other plunge beneath $30,000 could also be imminent.
BTC declines to $29,500 | Source: BTCUSD on TradingView.com
Not All Bad News For Bitcoin
While seven consecutive purple closes can usually paint a bearish image, this is not all the time the case. It is well-known that the digital asset can file probably the most bearish patterns proper earlier than restoration. Oftentimes, an amazing restoration.
An instance of this was in August of 2018 when the market had marked six consecutive purple closes. Since the market had been in a stretched-out bear market at that time, it was assumed that what would comply with this might solely be extra losses. However, this may show to not be the case because the digital asset had gone on to file 5 consecutive inexperienced closes.
Related Reading | Investors Make For Stablecoin Hills As USDT Volume Touches All-Time High
Now, this was not the beginning of the following bull market however it confirmed that as a lot as these traits can signify extra downtrends to come, they can be a precursor of a superb restoration. Expectations for bitcoin this time round are nice because the digital asset has been in a position to now break above $30,000, though it has hassle sustaining its place above this level.
The value of BTC is trending round $29,600 on the time of this writing. This places it barely above its 5-day easy transferring common however continues to present bearish traits throughout different indicators.
Featured picture from Cryptonaute, chart from TradingView.com