Bitcoin rarely makes a prolonged move in one direction without experiencing a retracement in the other one. Therefore, having several successive candlesticks of the same color is a rare occurrence.
One of the most commonly used time-frames for swing traders is the three-day one. The price at the time of writing was $7280 while the open was $7340. The Bitcoin price would have to close above $7340 to reach a bullish close.
I still can’t get over the fact that since trading at $1 bitcoin has never had 7 consecutive red 3D candles
if todays 3D closes red, literal records will be broken
— Crypto Loomdart (@loomdart) November 26, 2019
Five Bearish Bitcoin Three-Day Candlesticks
The Bitcoin price completed five successive bearish three-day candlesticks on June 2013. During this time, the price decreased from $105 to roughly $65.
What followed was a massive 1670 percent increase, culminating with a high of $1123 — reached on November 25 of the same year.
Five successive bearish candlesticks were also recorded in August 2015. Again, what followed was an upward move — this time, with a magnitude of 293 percent.
Therefore, until now, there have been two times in which the Bitcoin price has created five consecutive bearish candlesticks. Both times, an upward move ensued shortly after.
Six Bearish Candlesticks
The highest number of successive bearish candlesticks recorded has been six. We had the occurrence for the first time in February 2014. Unlike the two previous cases, the Bitcoin price continued to decrease by a massive 70 percent — until it eventually reached a low.
Six successive bearish candlesticks were also recorded in December 2018, This time, an upward move with a magnitude of 293 percent followed shortly after.
Currently, we have had six three-day bearish candlesticks in a row and are in the process of completing the seventh one — which has never been done before.
The price open was $7329 and a small increase is required from the current level to create a bullish close.
We believe the Bitcoin price will break out from the short-term pattern and reach at least $7750, as we discussed in our previous article. Therefore, the price should fail to create seven bearish three-day candlesticks in a row.
To conclude, while Bitcoin often retraces in order not to trade in the same direction for a prolonged period, we do not believe the number of candlesticks alone is enough to predict the future price.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Shutterstock, TradingView, Twitter.
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