Bitcoin for the previous two months has been closing consecutive weeks within the pink. The earlier week had seen it shut its seventh consecutive weekly candle for the primary time in historical past, and though traders hoped that this might finish with a reversal, the digital asset has gone on to mark one other week within the pink. This makes it the primary time ever for bitcoin to see eight consecutive weekly closes, inflicting main panic amongst crypto traders.
Eight Weeks Red Not Bad?
Normally when a big digital asset resembling bitcoin is closing a number of weeks within the pink, it factors in direction of an enormous bear market on the horizon. Now, it may be safely assumed that the crypto market has efficiently made its method into the bear market. This has been the rationale for the low and destructive momentum amongst traders over the past couple of months. But with bitcoin closing so many weeks within the pink, it is anticipated to worsen.
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One factor that has been constant when bitcoin has closed a number of weeks within the pink has been the downtrend that has normally adopted the market. Even although there are those that see this as a time to accumulate, the large sell-offs triggered by these pink closes have merely gained out in the long run. These kinds of consecutive destructive weekly closes have turn out to be generally known as an unavoidable a part of being in a bear market.
BTC marks eight consecutive pink shut | Source: BTCUSD on TradingView.com
However, the market has by no means seen something like this. It could be pure to need to use historic context when one thing alarming happens however with no level of reference, there is no method to inform the place the market would possibly go from right here.
Bitcoin In For A Bear?
Even although there is no historic context to examine the present market circumstances to, the other has occurred earlier than. Last 12 months, bitcoin had recorded eight straight weeks of inexperienced closes. What adopted this was a number of bull rallies that noticed the value of the digital asset ultimately hit its all-time excessive of $69,000.
If this have been to be taken and in contrast to present market circumstances, with the eight consecutive pink closes, the digital asset is possible in for a number of dips and crashes that may possible ship it again into the $20,000 territory. So it is very possible that the underside of the market is not as many would love to imagine.
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There are indicators that recommend in any other case although, resembling bitcoin buying and selling above its 5-day shifting common. But this is solely a great indicator for the shorter time period as longer-term indicators stay bearish.
Small traders are additionally selecting up the tempo when it comes to accumulating BTC. The variety of Bitcoin wallets with greater than 1 BTC on their steadiness had lately touched a brand new excessive, now sitting at 844,906. While this factors to constructive sentiment amongst these traders, within the grand scheme of issues, these smaller traders maintain too little to truly transfer the market. So if there is to be any restoration, the digital asset would want some motion from bigger holders.
Featured picture from Unsplash, chart from TradingView.com
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