Bitcoin price action over the weekend has been a virtual nail biter. The leading crypto by market cap, teetered on the edge of support for much of the weekend as bulls were able to successfully defend bears from pushing the price to retest lows at $9,200.
But despite the valiant effort from bulls, bears were able close the weekly candle red at roughly $10,140. The weekly candle closing red is the second red weekly close in a row, marking the first time this has occurred since Bitcoin price left its bear market bottom behind and the bull run first began.
Two Consecutive Red Weekly Candles: What Does This Mean for Bitcoin Price?
Since the start of February, only 9 out of 29 weekly candles have closed red. Unless you’re color blind, it’s easy to see that Bitcoin price action has been driven heavily by bulls. However, the first sign that bears may be taking over can been seen on weekly price charts.
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Last night, Bitcoin price closed at roughly $10,140 on Coinbase, making it the second weekly consecutive candle close that’s red. The two back-to-back weekly closes are significant as it is the first consecutive weekly red candle close since the bull run first began back in April.
Before the two red weeks in late January, the other time Bitcoin price closed two red candles in a row prior to it, was at the December 2018 bottom. Could two consecutive weekly red candle closes signal that a top is in?
The weekly MACD has also recently turned bearish for the first time since the bottom was set and Bitcoin went on yet another parabolic rally. Bitcoin price in 2019 has rallied from lows around $3,000 to highs around $14,000, and has since been consolidating or possibly correcting.
Bulls haven’t thrown in the towel just yet, either. Following the red candle close was an immediate over $500 price spike on most exchanges, liquidating over $52 million in “late shorters” on margin trading exchange BitMEX – an exchange currently under investigation by the CFTC.
Ouch. $52.2 Million in Shorts Liquidated on BitMex$BTC pic.twitter.com/BLhtRVOjgj
— Block Journal (@blockjournal) August 26, 2019
Despite the push, bulls have failed to sustain the short-lived pump, and is already down to $10,300 currently from the $10,700 local high. But bears have also been unable to push Bitcoin price deep below $9,800 with a strong daily candle close, resulting in slow grinding sideways price action.
The market is currently indecisive, and the next major move should result in a clear choice in terms of short-term price direction. A break above $11,000 should send a signal to bulls and bears alike that the correction is over and the bull run will resume. The two weekly red candles in a row will be nothing more than a pit stop in Bitcoin’s rally toward $100,000 or higher.
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If following these two red consecutive weekly candle closes the floor drops out of Bitcoin price, bulls will want to pay close attention the next time two weekly red candles stack up during a bull run – it might signal that it’s time for Bitcoin to retrace.