Bitcoin has just ended six monthly green candles (consecutively) for the first time since 2013. If history repeats, Bitcoin might enjoy more parabolic gains this coming year.
In April of 2013, Bitcoin ended at around $140 after having six green monthly candles. While the markets would pullback to under $100 over the next couple of months, Bitcoin would then increase 700% over the next six months and hit prices over $1,000 for the first time ever.
Bitcoin had a similar pattern in the time leading up to its parabolic run in 2017, posting five consecutive green candles going into September. While September gave range-bound consolidation, Bitcoin increased again to new all-time highs in October to go from $5,000 to nearly $20,000 by the end of that year.
Bloomberg strategist, Mike McGlone, says Bitcoin might be trading for over $400,000 by 2022, should the markets continue these trends which it previously followed between 2013 and 2017. McGlone recently predicted that Bitcoin is “on the path to becoming a digital reserve asset.”
Veteran market analyst, Peter Brandt, is also bullish on the cryptocurrency, saying that Bitcoin could gain another 250% to break higher than $200,000. “I believe we are in that midpoint where in 2017 Bitcoin stalled for a month or so before we witnessed the final move higher,” he said.
However, previous successes do not guarantee performance going forward and the history of green candles is a little shaky. Despite Bitcoin having five green candles in a row in Q4 2015, the early weeks of 2016 saw Bitcoin decrease by 20% before giving several months of consolidation.
Also, the five months of bullish gains that started 2019 was followed by a long downtrend, with Bitcoin falling over 60% from its 2019 highs during the “Black Thursday” crash of March 2020 and the crypto not regaining its highs until December 2020.
Author: Scott Dowdy