Bitcoin (BTC) threatened to proceed an unprecedented losing streak on May 29 as BTC/USD stayed in a proper intraday vary.
Shares correlation provides no consolation to BTC bulls
Information from Cointelegraph Markets Professional 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 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 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 newest version of which was launched on May 29.
“This isn’t the route of decoupling we had been hoping for!”
QCP echoed current sentiment over Bitcoin’s underperformance in contrast to beforehand highly-correlated equities.
Persevering with, widespread Twitter account Il Capo of Crypto forecast contemporary strain thanks to these indices now encountering sellside friction of their very own.
“Final 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%.
Associated: Small Bitcoin whales could also be protecting BTC price from ‘capitulation’ — evaluation
This could make May 2022 the second worst May in Bitcoin’s historical past, information from on-chain monitoring useful resource Coinglass confirmed.
Evaluation of downtrends over time in the meantime revealed that the present descent from highs was the fourth-longest ever, now at 200 days.
Famous by analyst Matthew Hyland, the longest-ever such downtrend occurred in 2014-15 and lasted greater than twice as lengthy.
#Bitcoin is at present in its 4th longest downtrend in its whole historical past: pic.twitter.com/bnT8uXIOsb
— Matthew Hyland (@MatthewHyland_) May 29, 2022
As Cointelegraph additional reported, historic patterns dictate that a interval of sideways price motion may now proceed, adopted solely later a capitulation occasion and macro backside.
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