Bitcoin price plunged more than 50% from recent highs a month ago. The sharp drop now represents the biggest drop in cryptocurrency history – but there are still a few days left before the monthly candle closes.
This means that bulls can reverse the damage caused by the recent crash and keep the structure of the bull market intact. To do this, however, the price per BTC must rise again to a now lost key level, and this must happen before the end of the month.
Why bitcoin bulls were blind to the biggest monthly sell-off ever
Bitcoin price has been in an uptrend for over a year, limited by the introduction of Coinbase Global on the Nasdaq exchange. The exuberance was just as high at the time, fueled by a possible “new paradigm” in crypto.
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Wall Street and the institutions were finally here. According to the crowd, there was no way the market would correct. But it did, and because no one saw it coming, it was particularly disastrous. Billions of dollars of overexposed longs were wiped out, and those overexposed in other ways were quick to regret it.
Edwards' custom tool shows the worst month on record | Source: BTCUSD on TradingView.com
The Blitzkrieg led to the worst monthly candle ever recorded, according to Bitcoin expert Charles Edwards. Edwards is responsible for creating some of the best tools in crypto, such as: B. the Hash Ribbons indicator.
Its drop% custom tool shows how bloody things have gotten (pictured above), but other analysts have been quick to argue that there is still time in the month to change the data.
Evening Star Pattern: Can Crypto Bulls Undo the Damage Caused?
This also means that bulls have a chance to undo the devastating candle pattern that remained on Bitcoin’s price chart. A slow month in April with very little movement resulted in a red doji candle at the height of an uptrend, followed by an enormous display of bears.
The pattern is known as the “evening star pattern” and is a reversal of epic proportions, often signaling that more red should follow. However, if bulls can leave a wick that measures roughly 50% of the red candle, that can be quite a statement too.
Bulls have to close above here to undo the pattern | Source: BTCUSD on TradingView.com
If Bitcoin price can close the monthly candle above $ 45,000, the evening star pattern will be defended for now. The next monthly candle has to be green to make sure the bull market is still intact. Otherwise, bears complete the pattern in their chase.
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Closing above that level could also keep the monthly RSI in bull market territory and prevent a major breakdown and fall into a bear market.
Can Bitcoin Bulls Roll Back Worst Monthly Candle Ever?
Featured image from iStockPhotos, Charts from TradingView.com