After closing lower for nine weeks consecutively, bitcoin finally broke this downward trend and celebrated its first green weekly candle since March. The asset surged to $30,000 within the last 12 hours.
BTC’s First Weekly Green Candle since March
The landscape surrounding the primary cryptocurrency was much more bullish towards the end of March. Bitcoin had already risen to over $10,000 in just two weeks, and was poised to challenge the $50,000 mark. But, the reality was quite the opposite.
BTC began to retrace its steps, sometimes slowly, sometimes more forcefully, instead of moving further north. It reached a negative record of six consecutive weekly candles that closed in the red six weeks later. The streak did not end, as bitcoin saw its ninth such candle last week.
BTC even climbed above $32,000 in the middle of week, which was more encouraging than the previous seven days. Despite falling below $30,000 and failing to recover, BTC still managed to close the week at $29,250 (the closing value at the end last week). It saw its first weekly green candle after March 21st.
The situation changed dramatically just hours later, with Bitcoin soaring above $30,000 to reach $31,000.
BTCUSD. Source: TradingView
Is it the worst?
Many community analysts began to speculate on the possibility that bitcoin had found its bottom, after it lost more than $20,000 in just two months. CryptoPotato reported yesterday that the latest discussions focused on the capitulation phase. This is when investors dump large amounts of their BTC holdings.
Analysts argued that markets bottom in these conditions are when investors have sold their assets even if they lose. They added that bear markets are often marked by long-term holders’ capitulation.
CryptoQuant cautioned that the sale could take weeks, if not months to complete and would not be a one-off event.
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