Analyst Weigh In as Bitcoin Hits Five-Day Red Streak

• Bitcoin sees five consecutive red days, marking its first instance since May 2023, signaling potential bearish momentum.
• Analyst Alan Santana suggests Bitcoin may face its biggest drop since mid-2022 due to recent bearish technical patterns.

Bitcoin’s market movements have taken a big turn, prompting concerns among analysts and traders about what comes next. A thorough analysis by well-known TradingView analyst Alan Santana reveals that this is the first time Bitcoin has gone red five days running since May 2023.

More importantly, this trend has started following a significant peak and reflects comparable trends last seen in the bear market of 2022. Santana asks a vital question: might this be the start of an unexpected reversal or is Bitcoin ready for its worst drop since mid-2022?

Analyst Warns of Potential Decline Amid Bitcoin Bearish Signals 

Santana points to two earlier this year events where BTC lost five straight days: in August, near the end of a significant drop, and in June, in line with a more general bearish trend. Neither of these, though, happened just following a major peak. This abnormality fuels more conjecture.

Source: Alan Santana on TradingView

Given the present circumstances, Bitcoin might be about to undergo a dramatic turn-around whereby the red streak ends and fresh development is expected to start. Santana does caution, though, that the more likely situation is a considerable decline.

The analyst underlines that there has been expected for some time a significant correction. Now given this unparalleled growth, Bitcoin’s position seems precarious. If price action moves below the neckline, the pattern formed resembles an inverted cup, which typically denotes a declining trajectory with potentially catastrophic outcomes.

“Once the action moves below the neckline, there is no going back; how far down can it go?” Santana notes. The lack of a fresh all-time high or even a higher peak in recent times confirms the bearish perspective even more.

Rather, Bitcoin has shown a technical double-top and a lower high on the long-term chart, therefore verifying that earlier bearish targets still hold true.

Previously, CNF has also noted conflicting opinions, pointing out that given the excitement around the U.S. election week, Bitcoin approached an all-time high. Bitcoin was buoyed while Ethereum stayed quiet, unable to surpass the $2.7k threshold.

Open interest in BTC futures and options has also increased; implied volatility in the run-up to the elections reflects a significant risk premium.

Meanwhile, BTC is trading at roughly $68,646.39 at the time of writing, showing a meager 0.40% increase over the last 24 hours and a 10.53% rise over the last 30 days.