Bitcoin (BTC) threatened to carry on an unparalleled losing streak on May 29 as BTC/USD remained inside a right intraday range.
Stocks correlation offers no comfort to BTC bulls
Already in a dubious record, Bitcoin’s weekly chart closes provided the setting to some weakness that ongoing to dissatisfy analysts over the past weekend.
Even stock markets, troubled by central bank tightening, were able to place in gains within the week, while Bitcoin many altcoins put into losses.
“Most concerning continues to be the divergence between Equities and Crypto. S&P and NASDAQ have traded about 10% greater since 20 May lows while both BTC and ETH have traded reduced exactly the same period,” buying and selling firm QCP Capital authored to subscribers of their markets e-newsletter, the most recent edition which was launched on May 29:
“This isn’t the direction of decoupling i was wishing for!”
QCP echoed existing sentiment over Bitcoin’s underperformance when compared with formerly highly-correlated equities.
Ongoing the concept, popular Twitter account Il Capo of Crypto forecast fresh pressure because of individuals indexes now encountering sell-side friction that belongs to them.
“Last time SPX rallied creating a new high while $BTC was making lower highs, we had bearish continuation once SPX reversed. Now SPX reaches resistance,” a publish at the time read.
Bitcoin faces the “darling dips of May”
With this, BTC/USD was primed to finish the month lower around 22%.
This could make May 2022 the 2nd-worst May in Bitcoin’s history, data from on-chain monitoring resource Coinglass confirmed.
Analysis of downtrends with time meanwhile says the present descent from highs was the 4th-longest ever, now at 200 days.
Noted by analyst Matthew Hyland, a long-ever such downtrend happened in 2014-15 and lasted greater than two times as lengthy.
— Matthew Hyland (@MatthewHyland_) May 29, 2022
As Cointelegraph further reported, historic patterns dictate that the duration of sideways cost action could now continue, adopted only later with a capitulation event and macro bottom.
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