Bitcoin prints seven consecutive red candles on weekly chart, the longest bearish streak since 2015
Bitcoin (BTC), the world’s largest cryptocurrency, has recorded its longest losing streak since early 2015 and has seen seven consecutive red candles on its weekly chart. The last time this happened, Bitcoin was only trading at $220 in January 2015.
According to a tweet from Cryptowatch, the event we are seeing is being repeated from the past in 2015, the year of the “black swan” economic event that caused investors to lose heavily.
Last week, the entire market was hit hard by the massive crash of one of the biggest blockchain projects, Terra, which caused Bitcoin to drop to $25,000 for the first time since December 2020 after a massive brutal sell-off crash.
It’s worth noting that the Relative Strength Index (RSI), which is used by traders to monitor market sentiment, has not been oversold since the pandemic-induced market crash in March.
Market analysts expect the largest cryptocurrency to see a rally if the dollar index (DXY) calms down after hitting multi-decade highs.
With the aforementioned negative streak, the popular Fear and Greed Index has gone deep into “Extreme Fear” territory. The index measures various data, including surveys, volatility, social comments, and more, to determine the overall sentiment in the community towards BTC. Results range from 0 to 100 (Extreme Fear to Extreme Greed).
The meter below shows the Index has fallen to its lowest position (Extreme Fear) since the COVID-19 crash showing a level of 9 over the weekend. Despite having recovered above 14 so far, the index is still in Extreme Fear territory.
However, it is worth noting that Bitcoin tends to react well in such times of apparent despair. For example, during the COVID-19 crash, the Index went as low as 8 when BTC dumped more than 50% in a single day. However, in the weeks and months that followed, the cryptocurrency not only recovered all of its losses but continued to record new highs before setting a new all-time high at the end of the year.
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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