Bearish Indicator: Is Bitcoin Headed For Its Ninth Red Weekly Close?
May 27 2022 - 6:00PM
NEWSBTC
This week, Bitcoin had made history when it recorded its eighth
consecutive red weekly close. This first-of-its-kind streak had
cemented the digital asset on one of the worst bearish trends that
have ever been recorded. Now, even as the week runs towards another
close, the cryptocurrency has not been able to make any
considerable recovery, indicating that it may not be done with its
bearish streak. Bitcoin Headed For A Ninth Red Close? With bitcoin
still trading well below $30,000, it is no long shot to speculate
that the digital asset may close out this week in the red too. If
it does so, then it will break its previous record while plunging
the market into even worse bearish trends. Nine consecutive weekly
closes would prove that bulls have mainly relinquished control of
the market, meaning the bears have the leeway to pull the market
down further. Related Reading | Bitcoin Dominance Remains High
As Market Sell-Offs Settle This combined with the increased
interest rates from the Fed has left investors feeling warier about
financial investments. Thus driving them towards more ‘stable’
investment options. With such money leaving the market, bitcoin
possesses little chance of actually reversing the current trend.
Even though bitcoin has been providing a safe haven from the
altcoin bloodbath, it does not mean that the digital asset itself
has not taken losses. NewsBTC reported that while bitcoin has been
the best performer of all the indices, the cryptocurrency is still
down 24% from the start of the month. This decline in price means
that investors are still not as bullish on the pioneer
cryptocurrency. BTC price falls to $28,000 | Source: BTCUSD
on TradingView.com What The Indicators Say For bitcoin, maintaining
above the 50-day moving average has always been a bullish
indicator. This is why the current trading value of the
cryptocurrency does not spell good news for it. For example,
bitcoin is more than $9,000 below its 50-day moving average. To
cement a recovery trend, it would not only have to move above this
point but will need to establish significant support above the
$40,000 level. This would mean that bitcoin would have to recover
37% to achieve this. Related Reading | Perp Traders Remain
Quiet As Bitcoin Struggles To Hold $30,000 While this is not
outside the realm of possibility, exchange inflows show that it is
very unlikely to happen. Over the last 24 hours alone, BTC exchange
inflows have surpassed outflows by $7.5 million, showing that the
sell-off trend continues to wax stronger. Unless this sell-off
trend can be halted and turned into an accumulation trend, a 37%
recovery remains out of the picture for bitcoin. Coupled with the
extreme fear sentiment that is being experienced in the space, BTC
is more likely to touch below $25,000 before establishing support
above $40,000. Featured image from BBC, chart from TradingView.com
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