Bitcoin btc
$ usd

Bitcoin Analyst Notes the Possibility of a First-Time-Ever Occurrence

2 mins
Updated by Adam James
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Bitcoin rarely makes a prolonged move in one direction without experiencing a retracement in the other one. Therefore, having several successive candlesticks of the same color is a rare occurrence.
One of the most commonly used time-frames for swing traders is the three-day one. The price at the time of writing was $7280 while the open was $7340. The Bitcoin price would have to close above $7340 to reach a bullish close. Cryptocurrency analyst and trader @loomdart noted that, since 2011, the Bitcoin price has never had seven consecutive three-day candlesticks with a bearish close.

Five Bearish Bitcoin Three-Day Candlesticks

The Bitcoin price completed five successive bearish three-day candlesticks on June 2013. During this time, the price decreased from $105 to roughly $65. What followed was a massive 1670 percent increase, culminating with a high of $1123 — reached on November 25 of the same year. Bitcoin June 2013 Five successive bearish candlesticks were also recorded in August 2015. Again, what followed was an upward move — this time, with a magnitude of 293 percent. Bitcoin Bearish Candlesticks Therefore, until now, there have been two times in which the Bitcoin price has created five consecutive bearish candlesticks. Both times, an upward move ensued shortly after.

Six Bearish Candlesticks

The highest number of successive bearish candlesticks recorded has been six. We had the occurrence for the first time in February 2014. Unlike the two previous cases, the Bitcoin price continued to decrease by a massive 70 percent — until it eventually reached a low. Bitcoin Bearish Candlesticks Six successive bearish candlesticks were also recorded in December 2018, This time, an upward move with a magnitude of 293 percent followed shortly after. Currently, we have had six three-day bearish candlesticks in a row and are in the process of completing the seventh one — which has never been done before. Bitcoin Bottom The price open was $7329 and a small increase is required from the current level to create a bullish close. We believe the Bitcoin price will break out from the short-term pattern and reach at least $7750, as we discussed in our previous article. Therefore, the price should fail to create seven bearish three-day candlesticks in a row. Bitcoin Head and Shoulders To conclude, while Bitcoin often retraces in order not to trade in the same direction for a prolonged period, we do not believe the number of candlesticks alone is enough to predict the future price.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing...