Bitcoin (BTC) has rallied to gain nearly 5% in as many hours, narrowly avoiding posting seven consecutive red daily candles for the sixth time ever.
The last time that BTC posted seven red daily candles in a row was heading into the start of August 2018.
From July 29 to Aug. 4 of last year, BTC fell 15% from approximately $8,240 to $7,000. Following the streak of red daily candles, the following week failed to produce a recovery, with prices sliding a further 15% before finding support at $6,000.
Bitcoin Has Posted Seven Consecutive Red Daily Candles Five Times
This past week’s price action comprises the sixth instance in which BTC has posted seven red candles consecutively since 2011.
At the start of September 2017, BTC posted a full week of bearish daily candles after failing to hold above $4,500 after testing $5,000 for the first time.
The move saw the price of bitcoin fall 30% over seven days, plummeting from $4,600 on Sept. 8 before finding support at $3,200 on Sept. 14. However, the markets immediately began to produce a bullish recovery, before breaking into new all-time highs one month later.
The second week of 2016 saw BTC post eight consecutive days of bearish price action for just the second time in the market’s history.
The run saw BTC’s price fall 21.8% from $460 as of Jan. 8 to $360 as of Jan. 15. The move precipitated roughly four months of sideways consolidation within an approximately 20% range.
BTC Produces Two Separate Weeks of Consecutive Bearish Momentum in 2014
The end of July 2014 saw BTC shed approximately 9.3% across seven days of red daily candles, with prices falling from $620 on July 24 to test support at $563 on July 30.
The move was followed by two weeks of sideways consolidation, before a break-down of support led to an approximately two-month bear channel down to $280.
During March 2014, BTC posted eight consecutive red daily candles for the first time. Prices fell 12.6% in one week, dropping from $640 on March 16 to $557 on March 23. After a few days of sideways consolidation, prices continued to break down – dropping below $350 four weeks later.