Hello, that's a very sharp observation. The sentiment you're seeing in the market, with consecutive red candles on the weekly chart and a potential red close for the month, definitely signals a shift in momentum.
While it's impossible to predict the future with certainty, here are a few views on what this could mean:
Potential Pullback: In a strong bull run, a red monthly candle or a couple of red weekly candles can often be seen as a pullback rather than a full reversal. A healthy trend needs to cool off as traders take profits, and this could be an opportunity for new buyers to step in at a lower price.
Key Levels to Watch: To determine if this is a pullback or a reversal, it would be important to watch key technical levels, such as major support zones, trend lines, and moving averages (like the 50-day or 200-day). If the price holds above these levels, it strengthens the case for a pullback and a continuation of the uptrend. A decisive break below them, however, could signal a more significant downtrend.
The Big Picture: Zooming out to the bigger picture is crucial. If Bitcoin has had a multi-month or multi-year uptrend, a single red monthly candle might not be enough to declare a full trend reversal. Context is key, and looking at the higher timeframes can provide a clearer perspective.
Ultimately, while the red candles point to short-term bearishness, it's vital to wait for confirmation and see how the price reacts to key support levels before making a definitive judgment on the long-term trend.
