Bitcoin is on an impressive run, eventually breaking above $40,000 for the first time in over a year. This run has been in the works for a few months and the climax comes between the months of October and December. As a result, Bitcoin has now recorded 8 green candles on the weekly chart and the historical performance suggests that this is bullish for the price.
8 green candles for BTC on the weekly chart
Over the past two months, Bitcoin price has consistently closed in the green, a trend that seemed strange just a few months ago. This green trend has continued into November, which was expected to be a bearish month, and in early December Bitcoin saw another green weekly close.
During this time when the BTC price has consistently closed in green on the weekly chart, the price has risen from as low as $27,000 to as high as $42,000. This means the price has increased by about 50%, adding about $15,000 in value over this two-month period.
This is happening at a time of polarizing views between the bulls and bears, even though the bullish indicators are consistently winning. The gains of the past eight weeks have completely wiped out a year of intense bearish headwinds and have led the Bitcoin price to fully recover all its losses from the collapse of the FTX, as well as its far-reaching contagion.
BTC price readies for another leg up | Source: BTCUSD on Tradingview.com
What Happens to Bitcoin the Last Time?
With Bitcoin, historical performance can often be a good indicator of future performance, especially when major trends repeat. For example, the last time the digital asset confirmed 8 green candles on the weekly chart, its price exploded not long after.
This can be seen in 2017, right at the beginning of the bull market, where the price went from around $1,100 to $2,900 before a slight decline. However, once the pullback was over, the price would begin another uptrend, pushing Bitcoin above $10,000 for the first time ever.
If this trend were to repeat this time, a pullback from this level is likely, but is not expected to be permanent. The resulting pump from the pullback will likely be confirmation of the bull market, leading to a new all-time high.
Bitcoin has also done incredibly well after 8 green candles on the daily charts. As reported by NewBTC, Bitcoin price has also risen rapidly when these green candles appear. As such, it is an overall bullish signal for Bitcoin.