Bitcoin Price Ends Longest Losing Streak Since December

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  • Bitcoin logged gains in the three days to July 20, snapping the longest losing streak on the three-day chart since December.
  • The bias, however, is still bearish with prices holding below $11,080 (as per Bitstamp).
  • Key indicators on short-duration charts are biased for a fall back below $10,000.
  • A 4-hour close above $11,080 would activate twin bullish cues and could yield a rally to $12,000.
  • A weekly close (Sunday, UTC) or consecutive daily close above $12,000 is needed to confirm a continuation of the bull market.

Bitcoin (BTC) ended its longest losing streak in seven months over the weekend, but the outlook still remains bearish.

The top cryptocurrency by market capitalization eked out 10.83 percent gains in the three days to July 20, confirming a green candle on the three-day chart.

The green candle notably formed following three consecutive red candles, representing bitcoin’s longest losing streak since the end of December, according to Bitstamp data.

Back then, BTC had created four straight read candles, as seen in the chart below.

Losing streak snapped

As seen above, bitcoin’s recovery rally from the bear market low of $3,122 on Dec. 15 ended with a four-candle losing streak, which saw prices create a bearish lower high at $4,236 and drop by 15 percent to $3,560.

The resistance created at $4,236 remained intact for more than three months before bitcoin breached that on the back of higher volumes on April 2, confirming a long term bearish-to-bullish trend change.

What followed was a solid rise to $13,880 by June 24. Essentially, BTC more than tripled in value in six months to June 24 and was looking overbought at the start of the current month.

Therefore, the latest three-candle losing streak likely marked a healthy correction of the bull market, as noted by popular technical and fundamental analyst Alex Kruger.

While the losing trend has ended, the correction phase may not be over yet, as the cryptocurrency is yet to violate the…

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