Bitcoin to set a new record 9-week losing streak with BTC price down 22% in May

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Bitcoin (BTC) threatened to continue an unprecedented losing streak on May 29 as BTC/USD stayed in a right intraday range.

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

Stocks correlation offers no comfort to BTC bulls

Data from Cointelegraph Markets Pro and TradingView flagged the largest cryptocurrency heading for nine weeks of downtrend in a row — the most in history.

Already at a dubious record, Bitcoin’s weekly chart closes provided the backdrop to weakness that continued to disappoint analysts over the weekend.

Even stock markets, troubled by central bank tightening, managed to put in gains over the week, while Bitcoin and the majority of altcoins added to losses.

“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 is not the direction of decoupling we were hoping for!”

QCP echoed existing sentiment over Bitcoin’s underperformance compared to previously highly-correlated equities.

Continuing, popular Twitter account Il Capo of Crypto forecast fresh pressure thanks to those indices now encountering sellside friction of their own.

“Last time SPX rallied making a new high while $BTC was making lower highs, we saw bearish continuation once SPX reversed. Now SPX is at resistance,” a post on the day read.

Bitcoin faces the “darling dips of May”

With that, BTC/USD was primed to end the month down around 22%.

Related: Small Bitcoin whales may be keeping BTC price from ‘capitulation’ — analysis

This would make May 2022 the second worst May in Bitcoin’s history, data from on-chain monitoring resource Coinglass confirmed.

BTC/USD monthly returns chart (screenshot). Source: Coinglass

Analysis of downtrends over time meanwhile revealed that the current descent from highs was the fourth-longest ever, now at 200 days.

Noted by analyst Matthew Hyland, the longest-ever such downtrend occurred in 2014-15 and lasted more than twice as long.

As Cointelegraph further reported, historical patterns dictate that a period of sideways price action could now continue, followed only later a capitulation event and macro bottom.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.



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