Bitcoin’s Longest Losing Streak Since December Finally Comes to an End
By Luke Flowers – Cryptocurrency Broker
After seven months since December, Bitcoin put an end to its losing streak over the weekend, though the outcome could still look rough as depicted via Coindesk.
The world's biggest cryptocurrency by market capitalisation made 10.83% gains on July 18th, with a green candle breaking the four-candle trend as Bitcoin held onto gains when looking at the three-day charts leading up to July 20th. This suggested to many that good news or sentiment to buy Bitcoin had emerged.
According to the data from Bitstamp, this green candle came after three straight red candles in a row, which highlighted Bitcoin's seven-month-long losing streak since December. Back then, Bitcoin had over four consecutive red candles as shown in trading charts on major exchanges.
As indicated by these candles, Bitcoin's recovery period from the bear market low of $3,122 on December 15th 2018, resulted in a four-candle losing streak that witnessed prices creating a bearish lower high at $4,236 and then drop by 15% to $3,560. During periods of uncertainty, it is hard to determine if buying or selling Bitcoin will dominate.
$4,360 persisted for more than three months before Bitcoin broke the resistance on the back of higher volumes on April 2nd. This finally saw a change in the long bearish-to-bullish trend as more looked to buy Bitcoin.
Then on June 24th, Bitcoin experienced a solid rise to $13,880. Bitcoin's value more than tripled in the last six months to this date and appears overbought at the beginning of the month.
This is why, according to popular fundamental and technical analyst Alex Kruger, the last three-candle losing streak marked the sign of health for the bull market. On the other hand, this trend after the rise in value could cause some to sell Bitcoin and potentially instigate another bear market.
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