So how bad can this be for BTC? A quick answer is not bad at all! Such a formation doesn't hurt Bitcoin's chances, in fact it enhances them.
How is that so? Well during the start of the previous 2 bull cycles (2015 and 2012) the price action also delivered a big 1W candle following the break out from the 1W MA50. This candle effectively put a stop to the parabolic rise on both occasions. What followed this candle was consolidation in the form of a that lasted 4 - 6 months before giving way to a new parabolic rise.
Assuming BTCUSD is following a similar pattern, we may have at least a 4 month consolidation ahead of us. However we've seen already that the start of the current bull market has been more aggressive to a fair extent compared to the previous ones. We'll see if the price moves as aggressively in the coming weeks.
What this analysis shows is that Bitcoin long term investors have no reason whatsoever to worry about as they have another sign to feel comfortable about. The 4 week close above the MA50. Closing above the MA50 for four straight weeks has been one of the strongest signals that the new bull cycle has started. The MA50 has since supported the new bull run and was only broked deep into the bear markets that followed. I am confident we have a similar case in our hands.
I am confident we have a similar case in our hands. Are you?