Bitcoin Now Sets A New Low After 9 Weeks of Downtrending
Bitcoin Sets A New Low After 9 Weeks of Downtrending
According to CoinCu data, Bitcoin, the most renowned cryptocurrency, is on track to set a new low after nine weeks of downtrending.
Bitcoin’s weekly chart closing, which had already set a dubious record, created the backdrop for a decline that continued to disappoint analysts over the weekend.
Stock markets, which have been roiled by central bank tightening, managed to recover gain this week, while Bitcoin and the rest of altcoins continued to lose their value.
“Most concerning has been the divergence between Equities and Crypto. S&P and NASDAQ have traded about 10% higher since 20 May lows while both BTC and ETH have traded lower in the same period,” trading firm QCP Capital wrote to subscribers of its markets newsletter, “This is not the direction of decoupling we were hoping for!”
The prominent Twitter account Il Capo of Crypto predicted more pressure as a result of the indexes’ own sell-side friction.
“Last time SPX rallied making a new high while $BTC was making lower highs, we saw bearish continuation once SPX reversed. Now SPX is at resistance.”
Bitcoin was expected to complete the month with a loss of roughly 22%
According to data from on-chain monitoring platform Coinglass, this would make May 2022 the second-worst May in Bitcoin history.
Meanwhile, a research of downtrends across time indicated that the current decline from highs is the fourth-longest in history, clocking in at 200 days. The longest-ever such decline, according to analyst Matthew Hyland, happened in 2014-15 and lasted more than twice as long.
According to historical trends, a period of sideways price action might now continue, followed by a capitulation event and a macro bottom only thereafter.
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