The price of bitcoin (BTC) threatened to continue an unprecedented losing streak on May 29as the BTC/USD pair remained in a straight intraday range.
Stock Correlation Offers No Comfort to BTC Bulls
Data from Cointelegraph Markets Pro and TradingView indicates that The largest cryptocurrency is headed for nine straight weeks of downtrendthe biggests of the history.
Already in a dubious record, bitcoin weekly chart closes provided context to the weakness that continued to disappoint analysts over the weekend.
Even stock markets, hit by central bank tightening, managed to post gains during the week, while bitcoin and most altcoins added losses.
“The most worrying thing has been the divergence between equities and cryptocurrencies. The S&P and NASDAQ have traded about 10% higher since the May 20 lows, while both BTC and ETH have traded lower over the same period,” trading firm QCP Capital wrote to subscribers on its website. markets bulletin, whose latest edition was published on May 29.
“This is not the undocking address we were hoping for!”
QCP echoed the existing sentiment towards bitcoin price underperformance compared to stocks, which were previously closely correlated.
Also, the popular Twitter account Il Capo of Crypto predicted new pressure as those indices now encounter some sell-side friction.
“Last time SPX rallied making a new high while $BTC made lower highs, we saw bearish continuation once SPX reversed. Now the SPX is in the resistance,” said one publication of the day
Bitcoin Price Faces ‘May Crashes’
With this, the BTC/USD pair was set to end the month down roughly 22%.
This would place May 2022 as the second worst May in bitcoin historyas confirmed by data from the on-chain monitoring resource Coinglass.
Analysis of downtrends over time revealed that the current decline from the highs is the fourth longest in history, now 200 days.
According to analyst Matthew Hyland, the longest downtrend in history occurred in 2014-15 and lasted more than twice.
#bitcoin is currently in its 4th longest downtrend in its entire history: pic.twitter.com/bnT8uXIOsb
— Matthew Hyland (@MatthewHyland_) May 29, 2022
Bitcoin is currently in its fourth longest downtrend in its entire history.
As Cointelegraph also reported earlier, historical patterns dictate that a period of sideways price action could now continue, followed only after a capitulation event and macro bottom.
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