This week, Bitcoin made history when it was Recorded its eighth red weekly closing in a row. This first-of-its-kind streak boosted digital assets in one of the worst downtrends ever recorded. Now, even as the week approaches another close, the cryptocurrency has not been able to make any significant recovery, which indicates that its descending streak may not be completed.
Bitcoin heading towards the ninth red close?
With Bitcoin still trading at less than $30,000, it was unpredictable Digital asset may close this week in red too. If it does, it will break the previous record while the market plunges into even worse downtrends. Nine consecutive weekly closes will prove that the bulls have essentially given up control of the market, which means that the bears have leeway to drag the market further lower.
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This coupled with higher interest rates from the Federal Reserve has made investors feel cautious about financial investments. Thus, it leads them towards “more stable” investment options. With this money out of the market, Bitcoin has little chance of actually reversing the current trend.
Although Bitcoin provides a safe haven from the bloodbath of altcoins, this does not mean that the digital asset itself has not suffered losses. NewsBTC reported Although Bitcoin was the best performer among all indicators, the cryptocurrency is still down 24% since the beginning of the month. This drop in price means that investors are still not optimistic about the leading cryptocurrency.
BTC price falls to $28,000 | Source: BTCUSD on TradingView.com
What do the indicators say?
For bitcoin, keeping above the 50-day moving average has always been a bullish sign. This is why the cryptocurrency’s current trading value is not good news for it. For example, the price of Bitcoin is more than $9,000 below the 50-day moving average. To consolidate the recovery trend, he will not only have to move above this point but will need to establish significant support above the $40,000 level. This means that Bitcoin will have to recover 37% to achieve this.
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While this is not beyond the realm of possibility, exchange flows show that it is unlikely to happen. In the past 24 hours alone, BTC exchange inflows exceeded outflows by $7.5 million, indicating that the selling trend is still stronger.
Unless this selling trend can be stopped and turned into an accumulation trend, a 37% recovery is still far from the picture for Bitcoin. Besides the intense fear we are seeing in the space, BTC is likely to reach below $25,000 before establishing support above $40,000.
Featured image from BBC, chart from TradingView.com
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