Bitcoin’s last six monthly candles have all closed in the pink, tying its previous bullish monthly candle run.
For the first time since April 2013, Bitcoin has closed six consecutive monthly green candles. If history repeats itself, Bitcoin may see even more parabolic gains this year.
After six green monthly candles, Bitcoin closed at around $140 in April 2013. Although the markets retraced to less than $100 in the following two months, Bitcoin surged 700 percent in the following six months, reaching rates of $1,000 for the first time.
In the months leading up to its parabolic bull run in 2017, Bitcoin followed a similar trend, with the markets reporting five consecutive green monthly candles going into September. Though Bitcoin remained range-bound in September, it soared to new all-time highs in October, rallying from $5,000 to nearly $20,000 by the end of the year.
According to Bloomberg strategist Mike McGlone, Bitcoin may be worth more than $400,000 by 2022 if markets continue to follow the patterns seen in 2013 and 2017. Bitcoin is “well on its way to being a global digital reserve asset,” according to McGlone.
Peter Brandt, a veteran trader and market analyst, is also optimistic on Bitcoin, expecting a further 250 percent rise to break above $200,000. “I believe we’re in that midpoint pause,” he said, “where Bitcoin swirled around for a month or two before the final jump up in 2017.”
However, past success is no guarantee of 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 months of bullish momentum that started 2019 were accompanied by a long-term downtrend, with BTC dropping more than 60% from its 2019 highs during the March 2020 “Black Thursday” crash. It took until December 2020 for Bitcoin to recover its 2019 price highs.