Bitcoin ends week ‘on the edge’ as S&P 500 officially enters bear market

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Bitcoin (BTC) struggled to recover its latest loss on May 21, after Wall Street trading provided zero respite.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC price reflects underperforming stocks

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading falling below $28,700 over the weekend, adding around $500 later.

The pair looked strongly range-bound at the time of writing, after United States stock indices saw a volatile last trading day of the week, down 4.7% from the previous day’s high of $30,700.

The S&P 500, which initially managed to reverse after falling at the open, nevertheless confirmed a bear market trend, was trading 20% ​​below its previous year’s highs.

“Another wacky day in the stock market. Dow Jones -500 at the start of the day, then it all settles down and closes +8,” said popular Twitter account Blockchain Backers commented Regarding broader US market performance.

“Bitcoin is still on edge.”

as Cointelegraph informed ofVarious sources called for bitcoin to fall once again, similar to last week’s capitulation event.

Continuing with the conservative macro outlook, fellow Twitter commentator PlanC argued that external changes could still push bitcoin far below current levels.

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“If the crypto market was in a bubble, I would say 25k to 27.5k bitcoin is down, but there is a good chance that macro factors could drag us down to 22-24k. Significant black swan, 15-20k becomes a possibility is,” part of a Tweet reading days.

Beyond equities, the US Dollar Index (DXY) was consolidating after a strong retracement from over twenty year highs.

US Dollar Index (DXY) 1-hour candle chart. Source: TradingView

May compete with 2021 for worst record

With ten days left until the end of the month, BTC/USD risked May 2022 being the worst in terms of returns in its history.

RELATED: Bitcoin Must Defend These Price Levels to Avoid ‘Too Deep’ Fall: Analysis

Data from on-chain analytics resource CoinGlass showed an overall return of -22% for bitcoin at present, the biggest retrace of any year except for -35% in 2021.

2022, the collective data confirms, was also the worst performer in the first five months of the year for bitcoin since 2018.

BTC/USD Monthly Return Chart (screenshot). Source: Coinglass

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