Traders are shocked and dismayed that Bitcoin has posted an unprecedented 14 red four-hour candles in a row. After some short-lived relief rebounding above $10,000, the leading cryptocurrency seems to be teetering on the edge of another drop.
Popular crypto-trader Crypto Loomdart (@loomdart) is reporting on his disbelief that Bitcoin recently posted 14 red four-hour candles in a row. This ‘deathstreak’ has never been seen in the history of Bitcoin.
After the 14 red candles, we saw a minor relief rally which pushed Bitcoin above the $10,000 price point again. Yet, this hasn’t held. After briefly touching $10,130 or so, Bitcoin has since plummeted again, and technical indicators point towards more pain.
The fear over the 14 4-hour red candles is that it is a harbinger of more downturn to come. As one trader noted, Bitcoin traders have never seen more than nine 4H red candles in a row at a time. This just might be unprecedented.
After following gold’s price movements for the past month or so, Bitcoin has now decoupled from the precious metal. Many analysts were speculating that Bitcoin’s upward price movement was due to geopolitical uncertainty surrounding the ongoing trade wars and currency issues. This theory was holding for most of the summer but has now apparently met its short-term ceiling. Gold, on the other hand, has remained stable.
It’s unclear if the 14 4H red candles on Bitcoin’s chart is a doomsday sign of more pain to come, but it’s dangerous to try to catch this falling knife regardless. Most traders are estimating the next main support level to be $8000 if the $9,500 price point breaks down. With the Crypto Fear & Greed index plummeting to levels not seen since 2018, ‘extreme fear’ has entered the market psychology. Though there is some hope, considering that Bitcoin’s stock-to-flow ratio is pointing at a price increase.
Let’s hope that 14 4H red candles is a record that will never be broken.
Do you believe that the 4H red candle ‘deathstreak’ is a sign that more downturn is coming? Let us know your thoughts below in the comments.
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