Bitcoin (BTC) threatened to continue a series of unprecedented losses on May 29, as the BTC / USD pair remained in a healthy intraday range.
Stock Correlation does not give BTC Speculators any comfort
Data from Cointelegraph Markets Pro and TradingView showed that the largest cryptocurrency was headed for the ninth straight week of decline, with such a streak being the largest in history.
Bitcoin’s weekly chart, which has already achieved its full awful rise, closes as a backdrop to the weakness that continued to disappoint analysts over the weekend.
Even stock markets, troubled by escalating central banks, posted gains during the week, while bitcoin and most altcoins contributed to the losses.
“The divergence between equities and cryptocurrency is a major concern. S&P and NASDAQ are up about 10% from the May 20 low, while BTC and ETH have fallen over the same period,” trading firm QCP Capital wrote to subscribers of its markets newsletter, the most recent issue of which was published on 29 May.
“This is not the direction of decoupling we were expecting!”
QCP reflected the current outlook for bitcoin underperformance against previously highly correlated stocks.
In addition, the popular Twitter account Il Capo of Crypto predicts additional pressure from these indices that are now experiencing friction from the seller ‘s point of view.
“The last time the SPX managed to make a new high and the BTC made a lower altitude, we saw a continuation when the SPX turned around. Now the SPX is catching on,” perhaps that we read in his post of the day.
Bitcoin faces “May diet declines”.
With that, the BTC / USD pair was ready for the end of the month down about 22%.
See also: Bitcoin whales could prevent BTC price from ‘capitalizing’ – analysis
This would make May 2022 the second worst May in bitcoin history, as confirmed by data from the Coinglass chain monitoring resource.
Analysis of the downward trends over time showed that the current rise from the peaks was the fourth longest on record, lasting 200 days.
According to analyst Matthew Hyland, the longest such downturn occurred in 2014-2015 and lasted more than twice as long.
– Matthew Hyland (@MatthewHyland_) May 29, 2022
#Bitcoin is currently on the 4th longest downturn in its entire history: pic.twitter.com/bnT8uXIOsb – Matthew Hyland (@MatthewHyland_) May 29, 2022
As Cointelegraph reports, historical patterns indicate that a period of price action on the other hand may continue, followed by a capitation and macro-floor event.
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investments and trades involve risk. You should do your own research before making a decision.