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Bitcoin to set a brand new report 9-week dropping streak with BTC worth down 22% in May

Bitcoin to set a brand new report 9-week dropping streak with BTC worth down 22% in May thumbnail
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Bitcoin (BTC) threatened to proceed an unprecedented dropping 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 doubtful report, Bitcoin’s weekly chart closes supplied the backdrop to a weak spot that continued to disappoint analysts over the weekend.

Even inventory markets, troubled by central financial institution tightening, managed to put in good points over the week, whereas Bitcoin and nearly all of altcoins added to losses.

“Most regarding has been the divergence between Equities and Crypto. S&P and NASDAQ have traded about 10% greater 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 e-newsletter, the most recent version of which was launched on May 29:

“This is just not the course of decoupling we have been hoping for!”

QCP echoed current sentiment over Bitcoin’s underperformance in comparison with beforehand highly-correlated equities.

Continuing the concept, fashionable Twitter account Il Capo of Crypto forecast recent strain due to these indexes now encountering sell-side friction of their very own.

“Last time SPX rallied making a brand new excessive whereas $BTC was making decrease highs, we noticed bearish continuation as soon as SPX reversed. Now SPX is at resistance,” a put up 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 could also be protecting BTC worth from ‘capitulation’ — evaluation

This would make May 2022 the second-worst May in Bitcoin’s historical past, information 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 worth motion may now proceed, adopted solely later by a capitulation occasion and macro backside.

The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Cryptonomie.eu. Every funding and buying and selling transfer includes danger, it’s best to conduct your individual analysis when making a call.

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