Bitcoin has recently witnessed an unprecedented surge, marking its largest monthly gain and longest green candle in history. This surge has sparked speculation about the possibility of what traders colloquially refer to as a “God candle.”
A God candle is a monumental candlestick pattern indicating a significant surge in an asset’s value. It stands out as the largest candle on a trading chart and is often viewed with incredulity due to its seemingly miraculous nature. Analysts suggest that a God candle could potentially propel an asset to substantial new highs.
While Bitcoin experienced notable surges in February, March, and October of 2021, none matched the magnitude of the recent rally. In February 2021, Bitcoin saw a $12,100 green candle, representing a monthly surge of 36%. The digital currency started the month trading at $33,128 and closed at $45,238 after reaching a peak of $58,372. The following month saw another significant candle, with a $13,500 gain and a 29% rally.
In October of the same year, Bitcoin surged from $43,822 to $61,357, resulting in a $17,500 candle, the second largest in history until last month’s rally.
In the most recent surge, Bitcoin climbed from $42,580 to $63,999, closing at $61,206 and printing a candle of approximately $20,000, the largest in its history.
This surge was attributed to several factors, including a breakthrough of significant resistance levels and short-term price targets. High demand from large U.S. investors, particularly within the Bitcoin exchange-traded fund (ETF) market, played a crucial role. The introduction of nine new spot products in this market fueled demand, outstripping supply from Bitcoin miners nearly tenfold and driving up the asset’s price.
Analysts anticipate sustained demand as institutions and high-profile investors leverage these regulated products to gain exposure to Bitcoin. This suggests the possibility of Bitcoin surpassing its all-time high of $69,000 before the next halving event in April.
With this trajectory, there is speculation that Bitcoin may print a God candle in the near future as it continues its ascent toward predicted peaks, potentially reaching $120,000.
