Showing the dominance of sellers, Bitcoin is about to close its eighth week in the red. Going from $48,200 to $30,100, this represents a 38% drop. However, this could be the turning point and the appearance of a green candle next week.
The reason for this is the strong support in the region of $30,000, the current price of Bitcoin. Tested last week and this week, it’s hard to believe the barrier will break next time. Despite this, the bears may be taking a breather to test the market further ahead, promising a tough year for Bitcoin.
In addition to being in the red for eight weeks, this is one of the biggest bearish periods for Bitcoin. In total there are 183 days of decline, from November of last year, when its price reached US $69,000, until the 12th of this month, when it reached US $25,400. However, history points out that these are the best times to accumulate more coins.
Have we reached the bottom?
Although Bitcoin has already experienced more abrupt and prolonged bear cyclesInterestingly, this is the record for weekly red candles. In 2014, bitcoin came to present six in a row, today we are already in the seventh and at the close of this Sunday we reached the eighth, in case Bitcoin does not close above $31,275.
The good news is that the next weekly candle will be green. The main reason is the strong support in the $30,000 region, the current bitcoin priceand it is hard to believe that its price will be below this level next Sunday (29).
Even so, this does not mean that the bears will give up breaking said support, on the contrary. These are likely to continue trying to take down bitcoin this year. So the timing is cautious, but it is still good to accumulate more bitcoin.
Among experts, opinions are diverse and divergent. While Arthur Hayes hopes that Bitcoin reaches $20,000analyst PlanB believes that the bearish cycle is coming to an end. Either way, they both believe in a market change.
183 days of Bitcoin bearish
In decline since November, when it reached its all-time high, Bitcoin is currently experiencing one of the largest bearish periods in its history. In total, there are already 183 days of low until the low registered on May 12 this month.
In this way, we are only behind the bear market of 2017, when Bitcoin was in decline for 362 days (basically a year), as well as the long period of 411 days when Bitcoin started its decline at the end of 2013 and just left. back in early 2015.
Although this relegation story is scary, we can also see the bright side: Bitcoin has always risen like a phoenix. So this might be the best time to fill your wallet if you’re thinking about the long term.