August 13, 2022

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 may 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 Pink Not Dangerous?

Usually when a big digital asset akin to bitcoin is closing a number of weeks within the pink, it factors in the 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 unfavorable momentum amongst traders over the past couple of months. However with bitcoin closing so many weeks within the pink, it’s anticipated to worsen.

Associated Studying | Lengthy Liquidations Proceed To Rock Market As Bitcoin Struggles To Settle Above $30,000

One factor that has been constant when bitcoin has closed a number of weeks within the pink has been the downtrend that has often adopted the market. Though there are those that see this as a time to build up, the large sell-offs triggered by these pink closes have merely received out ultimately. These kinds of consecutive unfavorable weekly closes have change into often called an unavoidable a part of being in a bear market.

See also  The Range of NFTs: Past Digital Artwork

BTC marks eight consecutive pink shut | Supply: BTCUSD on TradingView.com

Nevertheless, 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 such thing as a strategy to inform the place the market may go from right here. 

Bitcoin In For A Bear?

Though there is no such thing as a historic context to match the present market circumstances to, the alternative has occurred earlier than. Final 12 months, bitcoin had recorded eight straight weeks of inexperienced closes. What adopted this was a number of bull rallies that noticed the worth of the digital asset ultimately hit its all-time excessive of $69,000.

If this have been to be taken and in comparison with present market circumstances, with the eight consecutive pink closes, the digital asset is probably going in for a number of dips and crashes that can possible ship it again into the $20,000 territory. So it is rather possible that the underside of the market isn’t as many wish to consider.

Associated Studying | MicroStrategy Will Not Dump Any Of Its Bitcoin, CFO Reveals

There are indicators that recommend in any other case although, akin to bitcoin buying and selling above its 5-day transferring common. However that is solely a superb indicator for the shorter time period as longer-term indicators stay bearish.

Small traders are additionally selecting up the tempo in terms of accumulating BTC. The variety of Bitcoin wallets with greater than 1 BTC on their stability had just lately touched a brand new excessive, now sitting at 844,906. Whereas this factors to constructive sentiment amongst these traders, within the grand scheme of issues, these smaller traders maintain too little to really transfer the market. So if there may be to be any restoration, the digital asset would want some motion from bigger holders.

Featured picture from Unsplash, chart from TradingView.com

Observe Best Owie on Twitter for market insights, updates, and the occasional humorous tweet… 

See also  TA: Bitcoin Worth Alerts Bearish Response, Why BTC May Revisit $22K