Bitcoin has now entered maybe one among its most bearish intervals 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 crimson closes which have solidified its entrance right into a bear market. However, this time round, it appears that evidently the digital asset is able to set one other document, however this time for the more severe.
Seven Red Candles
Anyone that has been following the market not too long ago is aware of that Bitcoin has been seeing a number of consecutive crimson closes. This has not been a trigger for alarm although for the reason that digital asset has a historical past of marking bearish developments like these and nonetheless popping out on prime. But this could show to be a pattern like no different after the cryptocurrency had seen its seventh consecutive crimson shut.
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This would make it the primary time in historical past that bitcoin is marking such a pattern. However, what’s much more necessary is what seven consecutive crimson candles imply for the cryptocurrency. With the digital asset nonetheless being a vendor’s market, an in depth like this might set off much more sell-offs as traders fear about the way forward for the coin within the quick time period.
Furthermore, with so many crimson candles exhibiting on the charts, it may point out that there’s extra downtrend left to observe. An instance of this was marked within the 2014 bear market that noticed bitcoin document 4 consecutive crimson closes. What had adopted was a single inexperienced shut that might show to present option to an much more brutal downtrend. Now, if bitcoin had been to reflect 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 crimson closes can typically paint a bearish image, this isn’t at all times the case. It is well-known that the digital asset can document essentially the most bearish patterns proper earlier than restoration. Oftentimes, an incredible restoration.
An instance of this was in August of 2018 when the market had marked six consecutive crimson closes. Since the market had been in a stretched-out bear market at that time, it was assumed that what would observe this might solely be extra losses. However, this could show to not be the case because the digital asset had gone on to document 5 consecutive inexperienced closes.
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Now, this was not the beginning of the subsequent bull market but it surely confirmed that as a lot as these developments can signify extra downtrends to come back, they will also 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 bother 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 shifting common however continues to indicate bearish developments throughout different indicators.
Featured picture from Cryptonaute, chart from TradingView.com
