Is Bitcoin on the verge of its ninth red week close?

This week, Bitcoin made history Records eighth straight week of red weekly closesThis unprecedented continuity has seen the digital asset cement one of the worst bearish trends ever. Now, the cryptocurrency has failed to make any appreciable recovery even as it approaches another close this week, suggesting that it may not be able to break out of its bearish trend.

Bitcoin headed for ninth red close?

As Bitcoin is still trading well below $30,000, it is impossible to speculate Digital assets could also end the week with losses. If it does, then it will break the previous record while sending the market into an even worse bearish trend. A ninth straight weekly close would prove that bulls have largely relinquished control of the market, meaning bears have leeway to pull the market down further.

Related reading | Bitcoin dominance remains high as market sell-off resolves

Coupled with the Fed rate hike, investors are more cautious about financial investments. This prompts them to turn to more “stable” investment options. With these funds leaving the market, Bitcoin has little chance of actually reversing the current trend.

While Bitcoin has been providing a safe haven from the altcoin carnage, that doesn’t mean the digital asset itself hasn’t suffered. NewsBTC reports Despite Bitcoin being the best performer of all the indices, the cryptocurrency is still down 24% from the start of the month. This price drop means that investors remain less bullish on the pioneer cryptocurrency.

BTC price falls to $28,000 | Source: BTCUSD on TradingView.com

what the indicator says

Sustaining above the 50-day SMA has been a bullish indicator for Bitcoin. This is why the current trading value of cryptocurrencies does not bring good news for them. For example, Bitcoin is more than $9,000 below its 50-day moving average. In order to consolidate the recovery trend, it must not only rise above this point, but also need to establish significant support above $40,000. This means that Bitcoin has to recover 37% to achieve this.

Related reading | Perp traders keep silent as Bitcoin struggles to hold $30,000

While this is not impossible, foreign exchange inflows suggest it is unlikely to happen. In the past 24 hours alone, inflows to BTC exchanges outpaced outflows by $7.5 million, indicating that the selling trend continued to strengthen.

Unless this sell-off can be stopped and turned into an accumulation trend, Bitcoin will not be able to achieve a 37% recovery. Combined with the extreme fear that the space is experiencing, BTC is more likely to hit below $25,000 before establishing support above $40,000.

Featured image from BBC, chart from TradingView.com

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