Bitcoin just closed six consecutive monthly green candles for the first time since April 2013. If history repeats itself, Bitcoin could enjoy further parabolic gains this year.
In April 2013, Bitcoin closed at around $ 140 after posting six monthly green candles. As markets return to below $ 100 over the next two months, Bitcoin would then rise 700% over the next six months and mark prices above $ 1,000 for the first time.
Bitcoin showed a similar trend on the eve of its parabolic bull run in 2017, with markets posting five consecutive monthly green candles as September approached. While September saw the post-consolidation BTC range, Bitcoin hit new all-time highs in October, rising from $ 5,000 to nearly $ 20,000 by the end of the year.
According to Bloomberg strategist Mike McGlone, Bitcoin could trade for over $ 400,000 by 2022, if markets follow trends previously seen in 2013 and 2017. McGlone recently claimed that Bitcoin is “on track to become a global digital reserve asset. “
Veteran trader and market analyst Peter Brandt is also bullish on Bitcoin, to predict BTC could earn an additional 250% to exceed $ 200,000. “I think we’re in that middle break where in 2017 Bitcoin turned for a month or two before we saw the last upward move,” he said.
However, past trends do not guarantee future performance and the history of green candles is a bit murky. Although Bitcoin issued five consecutive monthly green candles at the end of 2015, the first few weeks of 2016 saw BTC collapse by 20% before producing several months of tightening consolidation.
Likewise, the five consecutive months of bullish momentum that began in 2019 were followed by a prolonged downtrend, with BTC falling more than 60% from its 2019 highs amid the ‘Black Thursday’ crash. March 2020. Bitcoin has not recovered its 2019 price – the highs until December 2020.