Bitcoin’s price has suffered quite a bit since the end of March, losing over $15,000 in this period. Moreover, the asset’s downwards trajectory has set a negative record as it closed six consecutive weeks with red candles for the first time in nearly eight years.
Let’s go back to the middle of March. The BTC landscape was not all that favorable as it struggled below $40,000. However, it all changed when the asset initiated two massive weekly leg ups that resulted in nearing $50,000.
The community was beginning to rejoice, the Fear and Greed Index went into “greed” territory for the first time in almost a year, and everything seemed to be blossoming.
Yet, what comes up must go down, as the saying goes. Bitcoin was not only halted in its tracks at the coveted $50,000 line but went into a negative streak that continues until this day – more than six weeks later.
As the chart below demonstrates, BTC has been freefalling since the end of March. Going down to $33,000 earlier today means that the asset has lost approximately $17,000. And it has closed with red weekly candles six times in a row for the first time since 2014.
There’s a lot of resemblance between the two negative streaks. Back then, BTC was two years after its halving (the first one ever, at the time), which is a period typically associated with bullish price developments. Indeed, BTC had soared by nearly 100x since the halving to the local peak at above $1,100 before it started its not-so-gradual descent.
Thus, between late August 2014 and late September 2014, the cryptocurrency was registering weekly closes in the red.
Despite breaking the adverse streak with a substantial green candle, bitcoin dumped further in the following several weeks back then. In fact, it marked a low at $155 in the middle of January 2015.
As such, if the resemblances continue now as well, it would be safe to prepare for another nosedive. This was recently forecasted by a popular crypto analyst, who relied on BTC’s realized price – it shows the value of all coins at the price they were purchased at divided by the entire BTC amount in circulation.
As of now, that price stands at $24,300, according to data from Glassnode, which could mean another near $10,000 drop.
