Bitcoin has simply closed six consecutive monthly green candles for the first time since April 2013. Ought to historical past repeat, Bitcoin could get pleasure from additional parabolic good points this 12 months.
In April 2013, Bitcoin closed at roughly $140 after posting six green monthly candles. Whereas the markets would retrace to lower than $100 over the subsequent two months, Bitcoin would then surge 700% over the following six months and tag costs above $1,000 for the first time.
BTC/USD since 2012, 1m candles: Buying and selling View
Bitcoin posted an identical sample in the lead as much as its parabolic bull run in 2017, with the markets posting 5 consecutive green monthly candles heading into September. Whereas September noticed BTC submit range-bound consolidation, Bitcoin surged into new all-time highs in October to rallied from $5,000 to virtually $20,000 by the finish of the 12 months.
In line with Bloomberg strategist, Mike McGlone, Bitcoin could possibly be buying and selling for greater than $400,000 by 2022, ought to the markets observe the tendencies beforehand witnessed throughout 2013 and 2017. McGlone just lately claimed that Bitcoin is “effectively on its solution to turning into a world digital reserve asset.”
Veteran dealer and market analyst, Peter Brandt, can also be bullish on Bitcoin, predicting BTC may achieve an additional 250% to interrupt above $200,000. “I feel we’re in that midpoint pause the place in 2017 Bitcoin swirled round for a month or two earlier than we noticed the remaining transfer up,” he mentioned.
Nonetheless, previous tendencies don’t assure future efficiency and the historical past of green candles is a bit murky. Regardless of Bitcoin posting 5 green monthly candles in a row throughout late 2015, the early weeks of 2016 noticed BTC crash by 20% earlier than producing a number of months of tightening consolidation.
Equally, the 5 consecutive months of bullish momentum that kicked of 2019 was adopted by a protracted downtrend, with BTC having fallen greater than 60% from its 2019 highs amid the “Black Thursday” crash of March 2020. Bitcoin didn’t reclaim its 2019 price-highs till December 2020.