Leading cryptocurrency Bitcoin is gaining strength in the market. This has led to a persistent red market for cryptocurrencies. The price continues to cause fear in the minds of investors as the price is dangerously close below $30,000 for the second time this week. Digital assets are now in the sixth consecutive loss in the market and show no signs of stopping anytime soon.
Bitcoin Paint The Town Red
Bitcoin is the leading cryptocurrency in the market and as such all other digital assets in the space tend to follow the trend of this asset. This is why Bitcoin is raising awareness as it marks the sixth consecutive red week in the market. The last time digital assets marked this trend was in 2014, eight years ago. So, what does the 8-year-old trend say about the future of pioneer cryptocurrencies?
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In 2014, there was a six-week deficit close for Bitcoin. This was followed by a year-long bear market. Now, if you believe in history and set Bitcoin to follow this trend once again, this could mean that this is just the beginning. If this historical trend holds, BTC could bottom out at $20,000 before the end of this downtrend.
BTC marks sixth red weekly close | Source: Arcane Research
At the weekly level, the only major support level is currently between $28,000 and $32,000. However, anyone following a digital asset recently knows that this asset cannot hold a position above $32,000. What this means is that the most support right now is at the $28,000 level. This is undoubtedly a bearish-pleasing price point as it acts as a bearish signal for the market.
Again in 2014, the market came out of an incredibly bull market, with digital assets growing above $600 just like the one in 2021. It was followed by six consecutive losses, and eventually digital assets lost more than 50% of their value, hitting $200 again.
Currently, Bitcoin hasn’t been able to hold above $32,000, but that doesn’t mean the bulls have given up the fight to regain their position. $31,000 doesn’t generate as much heat as $28,000, but it still remains the bull’s main support point. However, there is a strong need to keep Bitcoin from collapsing below $30,000.
BTC falls to $29,000 | Source: BTCUSD on TradingView.com
The reason is that even with significant support for digital assets at the $28,000 level, a decline to this point would still be a bearish signal. That will give the bears the hold they need to drive the market further down.
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A drop below $28,000 is inevitable for some of the space. It is important to note that if this happens, there could be $25,000 support, but the next major support level will most likely be the cryptocurrency’s previous all-time high at around $20,000.
Featured image from NewsBTC, charts from Arcane Research and TradingView.com