Between May 23 and May 30, the price of Bitcoin suffered further losses. If we reason in weekly data, this is the ninth consecutive week of decline your mother cryptocurrencies. So, are we moving towards continuing the decline or reversing the observed trend?
Bitcoin: a sad record!
Two weeks ago, Bitcoin posted a sad record of 7 consecutive weeks of losses. Record that the largest crypto project has accelerated two new weeks in the red. It is now 9 weeks in a row that Bitcoin has closed lower.
The following graph, available on the Coinmarketcap platform, shows the price of Bitcoin over the last 3 months.
This graph shows the decline in the price of Bitcoin since the end of March. A decline that also turned into a fall in the first half of May. Despite the fall in recent weeks, it stays light, which indicates the last part of the graph. For two weeks now, Bitcoin has been looking for its trend, compressed between $ 26,000 and $ 31,000.
Trend reversal for this week?
After 9 weeks of decline, it would be assumed that this week is definitely in line with the reversal of the trend. However, the first session of the week looks more positive. Most holders even hope she can bring it to LA.
As for this writing, Their price for Bitcoin has increased 3.53% in the last 24 hours. One BTC is currently trading at $ 30,394, following a bullish rally above $ 1,000 in just 3 hours. At the same time, the crypto market shows an increase of 3.41%, for 1,260 billion dollars of marketcap.
It is partly explained by the gradual rise of restrictive measures in the provinces of Shanghai and Beijing. China has just announced a detailed 50-point economic plan. Plan designed to boost economy in Shanghai’s, the largest in the country. Measures also benefited from Asian stock exchanges.
To give credibility to the trend reversal hypothesis, it is clear that breaking the $ 30,000 threshold on the first level will be breaking for a long time. On its own, the Fear and Greed encryption index is very much feared at 10/100, close to the May lows.
What about technical analysis?
For many observers, the bullish reversal hypothesis could gain weight if Bitcoin tested the threshold of $ 32,500. But the mother of cryptocurrencies could also settle tighter in an accumulated zone at this threshold of $ 30,000.
In the meantime, the hypothesis of a return to the $ 20,000 threshold cannot be ruled out either. While to some extent the fact that Bitcoin never fell below its starting point during a new ATH, the number of incidents is still too low to draw definitive conclusions.
Either way, the cryptocurrency market and Bitcoin price will remain linked to the evolution of the stock markets. And at this point, the week also seems to be off to a good start for the NASDAQ and the S&P 500, two indices with increases of 3.12 and 2.47% respectively over the session.
For its part, the CAC 40 recorded a much more modest rise. The day’s session saw a 0.56% improvement on the Paris index, driven in part by rising luxury values what are LVMH or Hermès. Stock markets themselves depend on other variables such as the rise in Fed rates or the evolution of the Russia-Ukraine conflict.
By investing your money, you run the risk of losing it.
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