Bitcoin (bitcoin) threatened to continue an unprecedented losing streak on May 29, as BTC/USD remained in the correct intraday range.
Equity correlation won’t comfort BTC bulls
Already here suspicious recordsBitcoin’s weekly chart close provided a backdrop for weakness that continued to disappoint analysts over the weekend.
Even equities hit by central bank tightening have managed to Earn within a weekwhile Bitcoin and most altcoins added losses.
“Most worrying is the divergence between stocks and cryptocurrencies. The S&P and Nasdaq have traded around 10% higher since their May 20 lows, while BTC and ETH have traded in the same period. lower,” trading firm QCP Capital wrote to subscribers of its market newsletter, last published on May 29.
“This is not the direction of decoupling we want!”
QCP response existing emotions Bitcoin has underperformed compared to previously highly correlated stocks.
Crypto’s popular Twitter account, Il Capo, continues to predict new pressures, thanks to the fact that these indices are now experiencing their own sell-side friction.
“Last time SPX rallied to new highs and $BTC made new highs, once SPX reversed, we saw a bearish continuation. Now SPX is in resistance,” a postal Read today.
Bitcoin faces ‘the darling of May’
As such, BTC/USD is on track to end the month down about 22%.
This would make May 2022 the second worst May in Bitcoin history, data from on-chain monitoring resources coin glass comfirmed.
Meanwhile, an analysis of the downtrend over time shows that the current decline from the high is the fourth longest decline ever, now at 200 days.
Analyst Matthew Hyland noted that the longest-running downtrend occurred in 2014-15 and lasted more than twice as long.
— Matthew Hyland (@MatthewHyland_) May 29, 2022
As Cointelegraph goes further reportHistorical patterns suggest that a period of sideways price action may now continue, followed by capitulation events and macro bottoms.
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