Bitcoin has and is about to do some things for the very first time in its history. What does it mean for Bitcoin moving forward?
Bitcoin Log Growth Curve
If you have been following and trading Bitcoin, I think you are quite familiar with all the different curves and graphs you can see. And if we take a look at the graph we will see that for the absolute majority of Bitcoin's existence we have been going up to the top yellow line, then back to the bottom yellow line.
And We have only once been below the bottom yellow line, and that was in 2020. But if we switch to the monthly version of this we can see that in the stint in 2020 where just two candles growing below, the body of the candles never went below the bottom yellow line.
But this month's candle will be the first-ever candle to close beneath the bottom yellow line. And you might think that is well and good, and Bitcoin has done a lot of "first" throughout its life, and this will be one of them. If you also add in the fact that the last top was far from reaching the top yellow line. It could very well be that Bitcoin is signaling that it is losing its momentum.
To be clear, we are talking about losing the unprecedented growth that has taken place over the last 12 years. We are not talking about Bitcoin dying. Just that it might slow down and start behaving like "normal".
Bitcoin has one other "first" for us
Bitcoin has one more first for us to take a look at. And that can be seen in the 6-month chart. Were every candle represent 6 months. What just happened here is we closed the first-ever Bearish Engulfing Candle. What that means is that the Bearish Candle's body is much larger than the candle that came before.
While we have had two Bearish Candles before in Bitcoins history. We have never ever had a Bearish Engulfing one. And what does it mean? Normally a candle of this type is followed by even further falling. But of course, there are always exceptions. And there are actually plenty of other indicators indicating that we have hit market bottom.
So I would take these two first-ever rather as indicators of slower growth than we are used to. Rather than signs or more blood to come. But that is of course only my opinion. And as you well know this is not financial advice and you will do whatever you want with your own hard-earned cash. =)
What are your thoughts on these two firsts, do they indicate more blood is going to be spilled in the streets or is my assessment of a slower and not as extreme growth a more likely scenario? Or is Bitcoin just trolling us by showing us something new before doing something crazy? Please share your thoughts on this in the comment section down below.
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