Digital currencyEconomical

Countdown to the start of 2023; Bitcoin and a new record low

On the eve of the beginning of the new year, there are both bearish and bullish signs in the long-term views of Bitcoin. Bitcoin has so far made a new bearish record on its 3-month chart, and it may show another bearish event on its 1-year chart for the first time at the end of 2023.

According to Aruzdigital, less than 24 hours before the end of the difficult year 2022 for digital currencies and the beginning of 2023, a bearish sign can be seen on the 3-month chart of Bitcoin, which has never been seen since the beginning of trading of this digital currency in exchanges.

As can be seen from the image below, for the first time in history, Bitcoin is on the verge of recording four seasonal (3-month) downward candles in a row, and the fate of this candle will be determined in a few hours. The only way to avoid recording this bearish record is if the candle of this Bitcoin season closes somewhere higher than its open price (candle start) of $19,400, which of course seems unlikely.

Logarithmic chart of Bitcoin price in 3 months view.

Aside from this unprecedented bearish sign, there is one hopeful thing about 2023, and that is that Bitcoin has never recorded two consecutive one-year bearish candles in its history. This means that it has never happened that the annual performance of this digital currency has been negative for two consecutive periods.

Countdown to the start of 2023;  Bitcoin and a new record low
Logarithmic chart of Bitcoin price in 12 months view.

The two graphs above are logarithmic; That is, to better display the fluctuations, instead of the changes of the prices themselves, Percentage of changes Prices are included. With this in mind, it should be said that 2022 is not the worst bearish year in the history of Bitcoin, contrary to what many less experienced traders think.

As can be seen from the chart above, the price drop during 2018 is equal to 73% and a bit more than the 64% drop of Bitcoin this year. Furthermore, after recording each annual bearish candle on the Bitcoin chart, the price has grown by an average of 105% in the following year.

However, since one cannot predict the future based solely on the past, which is Bitcoin’s not-so-long history, one must accept the possibility that 2023 will be somewhat of a surprise, with the first consecutive one-year bearish candles in this era. be registered

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