Bitcoin Is Down For The Sixth Week In A Row, The Worst Stretch Since 2014.

Because Bitcoin is the most popular cryptocurrency on the market, all other digital assets in the industry tend to follow its lead. This is why bitcoin’s sixth consecutive week of losses in the market is cause for concern. The last time the digital asset saw such a trend was in 2014, which was eight years ago.

Bitcoin experienced six weeks of red closes in 2014. A stretched-out bear market ensued, which would last for the better part of a year.

Now, if history is to be followed, and bitcoin is likely to follow this path once again, this could be only the beginning. If the historical trend continues, BTC might see a bottom in the low $20,000s before the decline ends.

The only major support level today is between $28,000 and $32,000 on a weekly basis. Anyone who has been following the digital asset recently knows that it has struggled to stay above $32,000.

This means that the most support is now found at $28,000, a price point that would undoubtedly thrill the bears since it serves as a bearish signal for the market.

Even in 2014, the market was coming out of an extremely bullish period, similar to the 2021 bull rallies, which saw the digital asset rise past $600. However, six consecutive red closures followed, and the digital asset eventually lost over half of its value, returning to the $200 threshold.

Bitcoin has so far been unable to maintain its position over $32,000, but this does not imply that bulls have given up hope of regaining their position. Even though it doesn’t pack as much heat as $28,000, $31,000 remains a key support level for bulls. The desire to keep bitcoin from falling below $30,000, on the other hand, is strong.

The reason for this is because, while the digital asset would find considerable support at $28,000, a drop to this level would still be a bearish indicator. It would give bears the required grip on the market to push prices even lower.

For some in the industry, a drop below $28,000 is unavoidable. If this happens, it’s vital to remember that while $25,000 may act as a support level, the next key support level is likely to be the cryptocurrency’s prior all-time high.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Patrick

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