Change of Direction? Bitcoin Finally Ended its Longest Ever Sequence of 9 Red Weeks

Change of Direction? Bitcoin Finally Ended its Longest Ever Sequence of 9 Red Weeks

After nine consecutive weeks of closing lower than the previous one, bitcoin finally managed to break this negative trend and marked its first green weekly candle since late March. This came as the asset jumped to and beyond $30,000 in the past 12 hours.

BTC’s First Weekly Green Candle Since March

It was at the end of March when the landscape around the primary cryptocurrency seemed significantly more bullish. At that point, bitcoin had added over $10,000 in two weeks and looked primed to challenge the coveted $50,000 line. However, what followed was precisely the opposite.

Instead of heading further north, BTC started retracing, sometimes more gradually, sometimes more violently. Weeks later, it equaled a negative record in terms of consecutive weekly candles closed in the red (6). However, the streak continued, and bitcoin saw its 9th such candle in a row last week.

The past seven days were more positive as BTC even spiked above $32,000 mid-week. Despite failing there and returning below $30,000, the cryptocurrency still managed to close the week above $29,250 (the closing price at the end of last week). As such, it saw its first weekly green candle since March 21st.

Just hours after that, the situation took another turn for the better as BTC jumped above $30,000 and now sits even north of $31,000.

BTCUSD. Source: TradingView

Is the Worst Over?

With bitcoin losing over $20,000 in two months at one point, many community analysts started speculating on whether the asset had finally found its local bottom. The latest such discussions, as reported by CryptoPotato yesterday, touched upon the capitulation phase, which, according to CryptoQuant, has seen investors dumping large portions of their BTC holdings.

The analysts argued that the markets tend to bottom out in such conditions when investors have disposed of their assets, even at a loss. “In bear markets, long-term holders’ capitulation usually marks a multi-year bottom,” they added.

Nevertheless, CryptoQuant warned that this sell-off could take weeks or even months to finish and not be a one-time thing.

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