Bitcoin (BTC) threatened to renew an unprecedented dropping streak on Might 29 as BTC/USD remained in a right-wing intraday vary.
BTC/USD 1-Day Candlestick Chart (Bitstamp). Supply: TradingView
Inventory correlation affords no consolation to BTC bulls
Knowledge from Cointelegraph Markets Professional and TradingView confirmed that the biggest cryptocurrency was heading for a nine-week straight downtrend — essentially the most in historical past.
Already at a doubtful document, Bitcoin’s weekly chart shut offered the backdrop for weak point that continued to disappoint analysts over the weekend.
Even inventory markets, affected by central financial institution tightening, posted positive aspects over the week, whereas Bitcoin and most altcoins contributed to losses.
“Most regarding has been the divergence between equities and crypto. S&P and NASDAQ have traded about 10% greater because the Might 20 lows, whereas each BTC and ETH have traded decrease over the identical interval,” buying and selling agency QCP Capital wrote to subscribers to its markets publication, the most recent situation of which was revealed on Might 29.
“This isn’t the decoupling course we have been hoping for!”
QCP reiterated current sentiment over Bitcoin’s underperformance versus beforehand extremely correlated shares.
Continued fashionable crypto Twitter account Il Capo predicts contemporary stress thanks to those indices now discovering their very own friction on the promote aspect.
“Final time SPX rallied and made a brand new excessive whereas $BTC made decrease highs, we noticed bearish continuation after SPX flipped. Now SPX is at resistance,” learn a publish of the day.
Bitcoin Faces ‘Favourite Drops of Might’
With that, BTC/USD was primed to finish the month down round 22%.
Associated: Minor Bitcoin Whales Might Maintain BTC Worth From “Capitulation” Evaluation
This might make Might 2022 the second-worst Might in Bitcoin historical past, knowledge from on-chain monitoring useful resource Coinglass confirmed.
Chart of month-to-month BTC/USD returns (screenshot). Supply: coin jar
Evaluation of downtrends over time, in the meantime, revealed that the present decline from the highs was the fourth-longest on document, now at 200 days.
As famous by analyst Matthew Hyland, the longest such downtrend occurred in 2014-15 and lasted greater than twice as lengthy.
#Bitcoin is at present within the 4th longest downtrend in its total historical past: pic.twitter.com/bnT8uXIOsb
— Matthew Hyland (@MatthewHyland_) Might 29, 2022
As Cointelegraph additional reported, historic patterns dictate {that a} interval of sideways worth motion may now be sustained, adopted solely later by a capitulation occasion and a macroeconomic backside.
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