Bitcoin is about to close its ninth consecutive red candle on the weekly chart.
BTC has lost more than 22,800 points in market value over this period.
Now, it all depends on whether BTC can hold above $29,000.
Share this article
Bitcoin appears to be trading at a make-or-break point as its future depends on its ability to hold the $29,000 support level.
Bitcoin Looks Oversold But Lacks Support
The pioneer cryptocurrency is in a steep downtrend as it struggles to find support.
Bitcoin is about to make a new record by closing its ninth consecutive red candle on the weekly chart. The flagship cryptocurrency has shed more than 22,800 points in market value since Mar. 28, going from a high of $48,222 to a low of $25,365. BTC still looks weak despite the significant losses incurred.
The damage to investors’ confidence brought on by Terra’s LUNA and UST death spiral has been too great to overcome. Although Terraform Labs successfully airdropped new LUNA tokens to previous LUNA and UST holders, it has done little to improve market sentiment. The Fear and Greed Index is at its lowest levels while trading volumes across the board continue to dry up.
Indeed, Bitcoin appears to be in a precarious position with investors showing little interest. $29,000 has held as support for nine weeks, but if BTC were to lose such a vital foothold, a 22% downswing toward the 200-week moving average at around $22,300 would likely materialize.
The magnitude of the losses that Bitcoin has incurred over the last nine weeks makes it reasonable to suggest that it has reached oversold conditions. If this were the case, BTC would have to regain $31,000 as support as soon as possible in order to lure investors back into the market. Overcoming such a difficult hurdle might generate a spike in buying pressure that could send prices toward $34,700.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.