Eight Consecutive Red Closes: Is Bitcoin På väg mot återhämtning?

Av NewsBTC - 1 år sedan - Lästid: 3 minuter
Man 23 maj 2022 11:00

Eight Consecutive Red Closes: Is Bitcoin På väg mot återhämtning?

Bitcoin for the past two months has been closing consecutive weeks in the red. The previous week had seen it close its seventh consecutive weekly candle for the first time in history, and although investors hoped that this would end with a reversal, the digital asset has gone on to mark another week in the red. This makes it the first time ever for bitcoin to see eight consecutive weekly closes, causing major panic among crypto investors.

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.

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One thing that has been consistent when bitcoin has closed multiple weeks in the red has been the downtrend that has usually followed the market. Even though there are those who see this as a time to accumulate, the massive sell-offs triggered by these red closes have simply won out in the end. These types of consecutive negative weekly closes have become known as an unavoidable part of being in a bear market.

Men marknaden har aldrig sett något liknande. Det skulle vara naturligt att vilja använda historiska sammanhang när något alarmerande inträffar men utan någon referenspunkt finns det inget sätt att säga var marknaden kan ta vägen härifrån. 

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.

Om detta skulle tas och jämföras med nuvarande marknadsförhållanden, med de åtta på varandra följande röda stängningarna, kommer den digitala tillgången sannolikt att drabbas av flera fall och krascher som sannolikt kommer att skicka tillbaka den till $20,000 XNUMX-territoriet. Så det är mycket troligt att botten av marknaden inte är som många skulle vilja tro.

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There are indicators that suggest otherwise though, such as bitcoin trading above its 5-day moving average. But this is only a good indicator for the shorter term as longer-term indicators remain bearish.

Small investors are also picking up the pace when it comes to accumulating BTC. The number of Bitcoin wallets with more than 1 BTC on their balance had recently touched a new high, now sitting at 844,906. While this points to positive sentiment among these investors, in the grand scheme of things, these smaller investors hold too little to actually move the market. So if there is to be any recovery, the digital asset would need some movement from larger holders.

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