With BTC down prices 23% in May, Bitcoin will establish a new milestone for a 9-week losing streak
As May winds down, the prices of cryptos take off on their own — but not in the way that anybody expected.
On May 29, Bitcoin (BTC) was poised to extend its unbroken losing skid as BTC/USD remained in a narrow daily zone.
BTC bulls aren’t comforted by the market connection
The biggest crypto is on track for the longest decline ever, according to information from Cointelegraph Markets Pro and Trading View.
Bitcoin’s weekly graph finishes, which had already set a questionable high, created the scene for a decline that proceeded to surprise observers over the weekend.
Financial markets, which have been impacted by central bank restrictions, managed to obtain ground this week, while Bitcoin and the bulk of cryptocurrencies continued to lose ground.
“Most concerning has been the divergence between equities and Crypto. S&P and NASDAQ have traded about 10% higher since 20 May lows, while both BTC and ETH have traded lower in the same period,” trading firm QCP Capital wrote to subscribers of its markets newsletter, the latest edition of which was released on May 29: “This isn’t the breaking path we wanted!”
Bitcoin’s shortfall in comparison to historically strongly connected stocks was mirrored by QCP.
Extending the theme, the famous Twitter account, Il Capo of Cryptocurrency, predicted new stress as a result of those indices’ own sell-side resistance.
“The last instance SPX made a new high while $BTC made a distance, we observed negative persistence after SPX fell. SPX is now reaching an according to a post from the day.
The “darling dips of May” are threatening Bitcreaching ones
As a result, BTC/USD was expected to complete the month with a loss of roughly 22%.
According to statistics from on-chain tracking platform Coinglass, this would make May 2022 the second-worst May in cryptocurrency annals.
However, a study of downswings over history shows that the average decline from peaks is the fourth-longest in history, clocking in at 200 days.
The lengthiest such decline, according to researcher Matthew Hyland, happened in 2014-15 and extended well over twice as much time.
According to Cointelegraph, past patterns suggest that a phase of forwarding price fluctuations is now likely to persist, preceded by a surrender incident and a macro bottom.
