The Bitcoin weekly chart has printed a red candlestick in a way that has quietly preceded some corrections. This candlestick appears in the numbers: in the open, the push, the rejection, and the close. That is exactly what happened last week. The candle that formed has now drawn the attention of an analyst who has catalogued its full history on Binance going back to 2017, and what he found is the possibility of another Bitcoin crash.
Bitcoin’s Weekly Candle Flashes A Rare Bearish Setup What Does This Mean For Bitcoin?Interestingly, this exact setup has appeared 33 times on Binance since 2017, and the historical record is heavily tilted to the downside. Over the 12 weeks following each signal, Bitcoin traded at least 3% lower in 31 out of 33 cases, at least 5% lower in 28 cases, at least 8% lower in 25 cases, and at least 10% lower in 23 cases.
The deeper part of the analysis is the average and median drawdown. The average drawdown after this weekly structure was 20.9%, while the median drawdown was 15.8%. Since Bitcoin closed last week at $77,457, a median version of the move would place the price on a further crash to $65,000, while an average version would drag the price close to $61,000.
