Bitcoin’s last six monthly candles have all closed in the pink, tying the previous record for bullish monthly candles.
For the first time since April 2013, Bitcoin has closed six straight monthly green candles. If history repeats itself, Bitcoin may see even more parabolic gains this year.
After six green monthly candles, Bitcoin closed at about $140 in April 2013. Although the stocks would retrace to less than $100 over the next two months, Bitcoin would rally 700% over the next six months, driving rates above $1,000 for the first time.
In the run-up to its parabolic bull run in 2017, Bitcoin displayed a similar trend, with the markets reporting five straight green monthly candles going into September. Though Bitcoin experienced range-bound consolidation in September, it soared to fresh all-time highs in October, rallying from $5,000 to nearly $20,000 by the end of the year.
According to Bloomberg analyst Mike McGlone, Bitcoin may be worth more than $400,000 by 2022 if stocks continue to meet the patterns seen in 2013 and 2017. According to McGlone, Bitcoin is “well on its way to become a major digital reserve currency.”
Veteran trader and market analyst, Peter Brandt, is also bullish on Bitcoin, predicting BTC could gain a further 250% to break above $200,000. “I think we’re in that midpoint pause where in 2017 Bitcoin swirled around for a month or two before we saw the final move up,” he said.
However, previous success does not insure potential results, and the background of green candles is a little hazy. Despite publishing five consecutive green monthly candles in late 2015, Bitcoin crashed by 20% in the early weeks of 2016, followed by several months of tightening consolidation.
Similarly, the five consecutive months of bullish momentum that began 2019 were accompanied by a sustained downtrend, with BTC falling more than 60% from its 2019 peak during the March 2020 “Black Thursday” crash. Bitcoin’s 2019 price highs were not reclaimed until December 2020.
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