bitcoin [BTC] The saga seems to never end as the leading cryptocurrency falls below the $30k mark again. The King coin showed signs of recovery after the fall of Terra, but it seems the crypto gods are not as happy with the coin. Now the question is why is BTC down again and is there any near term recovery for investors?
let’s find out.
flutter of the king coin
After Terra crash, bitcoin price is again below $29k. There are suggestions that are calling for macro headwinds that are responsible for dragging BTC price towards support levels.
Notably, the S&P 500 and the NASDAQ ended the seventh week in a row in losses. This is the longest losing streak since the end of the dotcom bubble in 2001. Additionally, the Dow is also in eight consecutive weekly losses, the longest streak since the Great Depression of 1932.
a sentiment Tweet Also indicates a correlation between BTC and the S&P 500 index, and that BTC’s upside movement was ‘stopped’ by equities. Major indices have witnessed free fall with warning signs of a massive recession and impending inflation.
Nevertheless, the king coin saw the bulls step over the $30k mark to lose the fight to the bulls. At press time, the Fear and Greed Index stood at 13 denotes ‘excessive fear’.
What do the charts say?
The metrics are also aligned with the above information, sending worrying signals to the bitcoin network. Investors’ fears can also be felt through low transaction volumes.
according to glassnode reportsTransaction volume fell to a four-month low on May 21. This level of extreme low was also observed in March 2022 when trading volume was 145,015.1 BTC.
Another indicator highlighting the bearish stance on bitcoin’s bitter position is the NVT signal. The NVT signal for bitcoin was at a four-year low of 235.2 on May 21, According to Glassnode.
This suggests that bitcoin was approaching the bottom of a local market that historically presented a period of accumulation. However, at present, there is an inherent FUD sentiment in the market due to the discounted prices of the assets.
wait….. there is more
Interestingly, recently the famous crypto analyst Plan B tweeted BTC price is suggesting a trend reversal. Plan B’s price predictions are widely used for analysis in the crypto community, as they have 1.8 million Twitter followers.
Shows real price / moving average (RPMA, purple) #bitcoin best cycle. The Relative Strength Index (RSI, yellow) is similar, but can be misleading at critical times (eg the second half of 2021). The good news: the bear market is almost over. Waiting for the RPMA and RSI to rise again. pic.twitter.com/Naz2zPV071
– PlanB (@100 trillionUSD) 20 May 2022
Plan B used the “Realized Price/Moving Average (RPMA)” and RSI metrics to indicate a near-end for a bear market. Confidence is growing regarding BTC recovery and Plan B suggests that the RPMA is the “best” indicator for Bitcoin. Despite all the bearish signs, Plan B looked hopeful for a quick revival.
Well, no matter what the indicators or analysts say, only time can reveal the future price trajectory of Bitcoin.