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Leading cryptocurrency bitcoin has been taking a beating after beating available in the market. What this has resulted in is a steady purple marketplace for the cryptocurrency. With its worth now leaning dangerously near breaking beneath $30,000 for the second time this week, it continues to strike worry within the hearts of traders. The digital asset has now recorded its sixth consecutive purple week available in the market and reveals no indicators of stopping anytime quickly.

Bitcoin Paints The Town Red

Bitcoin is the main cryptocurrency available in the market and as such all different digital property within the area are inclined to observe the tendencies of this one asset. This is why bitcoin marking its sixth consecutive purple week available in the market offers trigger for alarm. The final time that the digital asset had marked such a development had been eight years in the past in 2014. So what does an eight-year-old development say for the way forward for the pioneer cryptocurrency?

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In 2014, there had been six weeks of purple closes for bitcoin. What adopted was a stretched-out bear market that might proceed for the higher a part of a yr. Now, if historical past is to be believed and bitcoin was set to observe this development as soon as extra, then it might imply that that is solely the start. If this historic development holds, then BTC could very properly see the underside of the low $20,000s earlier than this downtrend is over. 

BTC marks sixth purple weekly shut | Source: Arcane Research

On a weekly degree, the one main assist degree now lies between $28,000 to $32,000. However, anybody following the digital asset not too long ago is aware of that it has been unable to take care of a place above $32,000. What this implies is that probably the most assist now lies on the $28,000 degree, a worth level that might little question please the bears because it acts as a bearish sign for the market. 

Even again in 2014, the market had been popping out of an extremely bullish market, identical to the 2021 bull rallies, that had seen the digital asset develop above $600. What adopted although was six consecutive purple closes and ultimately, the digital asset had misplaced over 50% of its worth to hit the $200 mark as soon as extra.

Bulls Putting Up A Fight

Presently, bitcoin has not been capable of maintain its footing above $32,000 however that doesn’t imply that bulls have given up the struggle to regain their place. $31,000 nonetheless stays a significant assist level for bulls although it doesn’t pack as a lot warmth as $28,000. However, the necessity to verify bitcoin doesn’t crumble beneath $30,000 is powerful.

BTC falls to $29,000 | Source: BTCUSD on TradingView.com

The motive for that is that although there can be important assist for the digital asset on the $28,000 degree, a fall so far would nonetheless be a bearish sign. It would give bears the mandatory maintain in the marketplace to have the ability to push additional down.

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For some within the area, a fall beneath $28K is inevitable. If this does occur, it is very important be aware that whereas there could also be assist at $25,000, the subsequent main assist degree probably resides on the earlier all-time excessive of the cryptocurrency, which is round $20,000.

Featured picture from NewsBTC, charts from Arcane Research and TradingView.com