Bitcoin Bleeds For Sixth Consecutive Weeks, Worst Stretch Since 2014

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Main cryptocurrency bitcoin has been taking a beating after beating available in the market. What this has resulted in is a steady crimson marketplace for the cryptocurrency. With its worth now leaning dangerously near breaking under $30,000 for the second time this week, it continues to strike concern within the hearts of traders. The digital asset has now recorded its sixth consecutive crimson week available in the market and exhibits no indicators of stopping anytime quickly.

Bitcoin Paints The City Purple

Bitcoin is the main cryptocurrency available in the market and as such all different digital belongings within the house are inclined to observe the traits of this one asset. For this reason bitcoin marking its sixth consecutive crimson week available in the market offers trigger for alarm. The final time that the digital asset had marked such a pattern had been eight years in the past in 2014. So what does an eight-year-old pattern say for the way forward for the pioneer cryptocurrency?

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In 2014, there had been six weeks of crimson closes for bitcoin. What adopted was a stretched-out bear market that might proceed for the higher a part of a 12 months. Now, if historical past is to be believed and bitcoin was set to observe this pattern as soon as extra, then it may imply that that is solely the start. If this historic pattern holds, then BTC might very properly see the underside of the low $20,000s earlier than this downtrend is over. 

BTC marks sixth crimson weekly shut | Supply: Arcane Research

On a weekly stage, the one main help stage now lies between $28,000 to $32,000. Nevertheless, anybody following the digital asset lately is aware of that it has been unable to keep up a place above $32,000. What this implies is that essentially the most help now lies on the $28,000 stage, a worth level that might little doubt please the bears because it acts as a bearish sign for the market. 

Even again in 2014, the market had been popping out of an extremely bullish market, similar to the 2021 bull rallies, that had seen the digital asset develop above $600. What adopted although was six consecutive crimson closes and in the long run, the digital asset had misplaced over 50% of its worth to hit the $200 mark as soon as extra.

Bulls Placing Up A Combat

Presently, bitcoin has not been in a position to maintain its footing above $32,000 however that doesn’t imply that bulls have given up the struggle to regain their place. $31,000 nonetheless stays a serious help level for bulls though it doesn’t pack as a lot warmth as $28,000. Nevertheless, the necessity to ensure bitcoin doesn’t crumble under $30,000 is robust.

Bitcoin price chart from TradingView.com

BTC falls to $29,000 | Supply: BTCUSD on TradingView.com

The rationale for that is that though there could be vital help for the digital asset on the $28,000 stage, a fall thus far would nonetheless be a bearish sign. It could give bears the mandatory maintain available on the market to have the ability to push additional down.

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For some within the house, a fall under $28K is inevitable. If this does occur, you will need to word that whereas there could also be help at $25,000, the subsequent main help stage seemingly resides on the earlier all-time excessive of the cryptocurrency, which is round $20,000.

Featured picture from NewsBTC, charts from Arcane Analysis and TradingView.com

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