Tuesday, December 6, 2022

Bitcoin to set a new record 9-week losing streak with BTC price down 22% in May


Bitcoin (BTC) threatened to proceed an unprecedented losing streak on May 29 as BTC/USD stayed in a proper intraday vary.

BTC/USD 1-day candle chart (Bitstamp). Source: TradingView

Stocks correlation gives no consolation to BTC bulls

Data from Cointelegraph Markets Pro and TradingView flagged the most important cryptocurrency heading for 9 weeks of downtrend in a row — probably the most in historical past.

Already at a dubious record, Bitcoin’s weekly chart closes supplied the backdrop to weak spot that continued to disappoint analysts over the weekend.

Even inventory markets, troubled by central financial institution tightening, managed to put in gains over the week, whereas Bitcoin and the vast majority of altcoins added to losses.

“Most regarding has been the divergence between Equities and Crypto. S&P and NASDAQ have traded about 10% larger since 20 May lows whereas each BTC and ETH have traded decrease in the identical interval,” buying and selling agency QCP Capital wrote to subscribers of its markets publication, the most recent version of which was launched on May 29.

“This isn’t the route of decoupling we have been hoping for!”

QCP echoed existing sentiment over Bitcoin’s underperformance in contrast to beforehand highly-correlated equities.

Continuing, common Twitter account Il Capo of Crypto forecast contemporary stress thanks to these indices now encountering sellside friction of their very own.

“Last time SPX rallied making a new excessive whereas $BTC was making decrease highs, we noticed bearish continuation as soon as SPX reversed. Now SPX is at resistance,” a post on the day learn.

Bitcoin faces the “darling dips of May”

With that, BTC/USD was primed to finish the month down round 22%.

Related: Small Bitcoin whales may be keeping BTC price from ‘capitulation’ — analysis

This would make May 2022 the second worst May in Bitcoin’s historical past, knowledge from on-chain monitoring useful resource Coinglass confirmed.

BTC/USD month-to-month returns chart (screenshot). Source: Coinglass

Analysis of downtrends over time in the meantime revealed that the present descent from highs was the fourth-longest ever, now at 200 days.

Noted by analyst Matthew Hyland, the longest-ever such downtrend occurred in 2014-15 and lasted greater than twice as lengthy.

As Cointelegraph additional reported, historic patterns dictate that a interval of sideways price motion might now proceed, adopted solely later a capitulation occasion and macro backside.

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