Bitcoin price fell More than 50% from its recent high of only a month ago. The sharp decline now represents the largest decline in the history of cryptocurrency – but there are still several days left for the monthly candle to close.
This means that the bulls can make up for the losses caused by the recent crash, and maintain the structure of the bull market. However, to do so, the price per BTC must now climb back to a lost level, and do it before the end of the month.
Why were the bitcoin bull markets blinded by the biggest monthly sell-off ever?
The price of bitcoin was in an uptrend for over a year, which. Was limited by Introduction to Coinbase Global On the Nasdaq stock market. At the time, the enthusiasm was high, driven by a possible “new paradigm” in crypto.
Wall Street and the Institute were finally here. There was no way for the market to be perfect according to the crowd. Still it happened and because no one saw it coming It was particularly devastating. Over-leveraged longs were erased to the tune of billions, and those who were overexposed in other ways quickly regretted it.
Edwards' custom tool shows the worst month on record | Source: BTCUSD on TradingView.com
Blitzkrieg resulted in the worst monthly candlestick ever on record, According to bitcoin expert Charles Edwards. Edwards is responsible for creating some of the biggest tools in crypto, such as the hash ribbon indicator.
His custom “drop%” tool shows how the bloody stuff was found (pictured above), but other analysts were Quick to argue There is still time left in the monthly to change the data.
Evening Star Pattern: Can Crypto Bull Market Undo Loss?
It also means that bulls have a chance to undo Destructive candlestick patterns It has been left on the price chart of bitcoin. A slow moving month in April resulted in a very low speed as a red doji candle was at the height of an uptrend, which was followed by a large display by the bears.
The pattern is called the “Evening Star Pattern” and is Reversal of epic proportions, Often indicates more red to follow. However, if the bulls can leave a wick behind measuring about 50% of the red candle, it can also be quite a statement.
Bulls have to close above here to undo the pattern | Source: BTCUSD on TradingView.com
If the price of bitcoin can close the monthly candle above about $ 65,000. Evening star pattern For the time being, rescue will be done. To ensure that the bull market is still intact, the next monthly candle must be green, otherwise, the bears will complete the pattern in their followup.
Related reading | Making a case that bitcoin is down
Can bitcoin bulls undo the worst monthly candle on record?
Featured image from iStockPhotos, Charts from TradingView.com