Bitcoin Price Closes Two Consecutive Weekly Red Candles, First Time Since Bottom

Tony "The Bull" Severino

1 year ago

3 mins read

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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.

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.

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.

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.

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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.