Eight Weeks Red Not Bad?
Normally when a large digital asset such as bitcoin is closing multiple weeks in the red, it points towards a massive bear market on the horizon. Now, it can be safely assumed that the crypto market has successfully made its way into the bear market. This has been the reason for the low and negative momentum among investors over the last couple of months. But with bitcoin closing so many weeks in the red, it is expected to get worse.Related Reading | Long Liquidations Continue To Rock Market As Bitcoin Struggles To Settle Above $30,000
BTC marks eight consecutive red close | Source:
However, the market has never seen anything like this. It would be natural to want to use historical context when something alarming occurs but with no point of reference, there is no way to tell where the market might go from here.
Bitcoin In For A Bear?
Even though there is no historical context to compare the current market conditions to, the opposite has happened before. Last year, bitcoin had recorded eight straight weeks of green closes. What followed this was multiple bull rallies that saw the price of the digital asset eventually hit its all-time high of $69,000.
If this were to be taken and compared to current market conditions, with the eight consecutive red closes, the digital asset is likely in for multiple dips and crashes that will likely send it back into the $20,000 territory. So it is very likely that the bottom of the market is not as many would like to believe.Related Reading | MicroStrategy Will Not Dump Any Of Its Bitcoin, CFO Reveals
Featured image from Unsplash, chart from TradingView.com
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