Leading cryptocurrency bitcoin has been taking a beating after beating in the market. What this has resulted in is a continuous red market for the cryptocurrency. With its price now leaning dangerously close to breaking below $30,000 for the second time this week, it continues to strike fear in the hearts of investors. The digital asset has now recorded its sixth consecutive red week in the market and shows no signs of stopping anytime soon.
Bitcoin Paints The Town Red
Bitcoin is the leading cryptocurrency in the market and as such all other digital assets in the space tend to follow the trends of this one asset. This is why bitcoin marking its sixth consecutive red week in the market provides cause for alarm. The last time that the digital asset had marked such a trend had been eight years ago in 2014. So what does an eight-year-old trend say for the future of the pioneer cryptocurrency?
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In 2014, there had been six weeks of red closes for bitcoin. What followed was a stretched-out bear market that would continue for the better part of a year. Now, if history is to be believed and bitcoin was set to follow this trend once more, then it could mean that this is only the beginning. If this historical trend holds, then BTC may very well see the bottom of the low $20,000s before this downtrend is over.
BTC marks sixth red weekly close | Source: Arcane Research
On a weekly level, the only major support level now lies between $28,000 to $32,000. However, anyone following the digital asset recently knows that it has been unable to maintain a position above $32,000. What this means is that the most support now lies at the $28,000 level, a price point that would no doubt please the bears as it acts as a bearish signal for the market.
Even back in 2014, the market had been coming out of an incredibly bullish market, just like the 2021 bull rallies, that had seen the digital asset grow above $600. What followed though was six consecutive red closes and in the end, the digital asset had lost over 50% of its value to hit the $200 mark once more.
Bulls Putting Up A Fight
Presently, bitcoin has not been able to hold its footing above $32,000 but that does not mean that bulls have given up the fight to regain their position. $31,000 still remains a major support point for bulls even though it doesn’t pack as much heat as $28,000. However, the need to make sure bitcoin does not crumble below $30,000 is strong.
BTC falls to $29,000 | Source: BTCUSD on TradingView.com
The reason for this is that even though there would be significant support for the digital asset at the $28,000 level, a fall to this point would still be a bearish signal. It would give bears the necessary hold on the market to be able to push further down.
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For some in the space, a fall below $28K is inevitable. If this does happen, it is important to note that while there may be support at $25,000, the next major support level likely resides at the previous all-time high of the cryptocurrency, which is around $20,000.
Featured image from NewsBTC, charts from Arcane Research and TradingView.com
Source: https://bitcoinist.com/bitcoin-bleeds-for-sixth-consecutive-weeks/