Regardless of the lukewarm value movement over the previous two days, Bitcoin has seen an exceptional rally over the past 5 weeks.
As this outlet reported recently, the cryptocurrency ended so well that on Monday morning, BTC had printed 5 – of course, 5 – inexperienced weekly candles in a row for the first time since the small bull run. of 2019, as analyst JofDom Noted. The candles symbolize a rally of almost 100%.
It may be a magnificent rally that has caused analysts to want a further rise. As an illustration, a dealer revealed the graph below, showing that there are some exceptional similarities between the underside that has occurred from December 2019 to January 2020 and now. He went so far as to say that if history repeats itself, $ 9,500 is imminent.
The point is, it is far too early to say whether this development will be adopted.
Already two days in the week, Bitcoin is below weekend highs and weekly close, which can happen in the first purple weekly candle in over a month. And statistics show that if the bears proceed with complaints handling, BTC is on the verge of falling or even falling.
Statistics: Bitcoin may tank in the coming days
Cryptostatistician JofDom Noted that every time Bitcoin ended a successful five-week streak, it was marked by a sharp decrease in transfers by a median of -11.69%, with a minimum transfer of -1.23% and a transfer maximum of -27.11%.
This could indicate that if Bitcoin bears have to manage to complete the bullish streak, the cryptocurrency is statistically more likely to fall to $ 6,200, or 12% lower than the weekly open, which could be in line with the knowledge of JofDom. The information also means that better reversion reduction is possible, but not as likely.
It should be noted that the bearish situation will not be confirmed. While Bitcoin has slipped 4% since its weekly open, the statistician confirmed that only 50% of the time throughout history BTC failed to print a sixth weekly candle in the row that was inexperienced.
That 50% won’t be a good odds, to say the least, but it’s achievable for bulls.
Related Studies: The last time this pattern happened, Bitcoin rallied at 2,700%. It’s still but one more time
Inventory Crash May Cement Bear Case
With stocks reversing from their 30% bullish rally, it nonetheless looks like the bearish case is about to cement itself.
After hitting just under 2,900 factors at the end of last week, the S&P 500 has started to reverse, with futures falling to 2,770 as the consequences of a damaging oil price spill over to markets. international markets.
Bitcoin could simply be damaged by such a reversal in the stocks market if this keeps up.
In a statement revealed last week on April 15, the Kansas Metropolis Federal Reserve asserted that Bitcoin is definitely not a safe haven, noting that the asset has acted more like a dangerous asset than digital gold.
This analysis would recommend that if the stocks market and other markets sell out again, BTC and the rest of the cryptocurrency market will not be spared.
Related Studies: This Unique Monetary Model Will Make Bitcoin Succeed: Billionaire
Picture by Karl Lee on Unsplash