Bitcoin Price At Risk of Closing Second Consecutive Monthly Red Candle

Tony "The Bull" Severino

5 years ago

3 mins read

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Throughout all of 2019, Bitcoin price has been on a steady ascent. For the greater portion of the year, Bitcoin appeared to be unstoppable and broke through resistance after resistance, even as the altcoin market bled out.

But last Sunday, Bitcoin price closed two consecutive weekly red candles for the first time since the bull rally began, and if tomorrow night’s daily closes below $10,100, it’ll also be the first time that Bitcoin closed two consecutive monthly candles in all of 2019. But what does that mean for the first-ever crypto asset and its current bull trend?

Bitcoin Price Could Close Second Monthly Red Candle in a Row

During times of such critical price action, daily closes on Bitcoin price charts become extremely significant, as higher time frames often dictate trend changes and help analysts predict future price movements.

The higher the timeframe gets, the more significant. Last Sunday night, Bitcoin price closed its second consecutive weekly red candle, marking the first time it has done so since Bitcoin first began to climb in February 2019 after bouncing off the 200-week moving average – an important long-term trend indicator.

Now, tomorrow night is the monthly close and at current prices, Bitcoin is at risk of closing its second monthly red candle in a row. If it does so, it’s the first time this has happened in all of 2019. however, it’s not yet clear what this means for Bitcoin price and its short term trend.

In Case of Trend Change: Bullish and Bearish Scenarios

Two monthly candle closes in a row could be significant. In 2018, two consecutive red monthly in a row is what really kicked the bear market up a notch. Following two months of red, Bitcoin price closed the next month green, followed by an unprecedented six monthly candle closes in a row, taking the crypto asset down to its eventual bottom in December 2018.

If the current two red closes indicate a reversal back into the bear market, a November 2018 style drop may actually become a reality.

However, there’s hope for bulls yet. During the last bull run, the only time Bitcoin price closed two monthly red candles in a row, was in July and August of 2016. After BTC bounced from there, it went on to never again close two monthly red again, until the aforementioned 2018 bear market starting point.

The next few months should determine if Bitcoin price is still locked in a bear market, or if this was that reaccumulation phase before the bull run really begins, and Bitcoin reaches and sets a new all-time high.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.