Bitcoin ended the week barely holding above $30,000. In these eight weeks, bitcoin crashed down by more than 40%.
The price of bitcoin closed lower again this past week. This last period of a week is already eight weeks in a row closing in the red for the digital asset. This is something that had never happened before.
BTC crashed another 3.29% between Monday, May 16, and the close of business on Sunday, May 22. At the close of Sunday, the digital asset price was just above $30,000, according to TradingView recorded data.
During this losing streak for bitcoin, the price crashed from almost $47,000 per unit. Or what is the same: there has been a fall registered at more than 40% in 8 weeks for BTC. And although this week closed again in the red, there is something positive to highlight: a slight awakening from the lowest point of the previous period, when the lowest price of the entire year was registered for BTC, just over 25,000 dollars.
BTC had not reached that cost for more than a year. The last time it happened was in December 2020, when the digital asset was in full swing after surpassing the 20,000 barriers.
Early this week, BTC is in the green. However, the rally is virtually invisible, with the digital asset hovering around $30,400. It is not even parallel to a 0.5% growth.
As Above so, Below
In his most recent newsletter, market analyst Scott Melker talked about bitcoin’s weekly losing streak. However, he explained that with each passing week and more fear in the market, the chances of a considerable rebound rationally increase.
He thinks that if “what goes up must come down… The reverse is also valid. Melker thought it was hard to assure that this rebound would occur, although it seems likely.
The analyst also observed a slight recovery trend for the digital asset, notably during the last two weeks. They are even having closed both periods in red. For him, one element stands out: in the previous two weeks, there has been a certain level of recovery towards the end of each period.
In addition to this appreciation of Melker, some events have taken place: purchasing rate has experienced growth, institutional investors seem to be betting on a further rise in price, and traders have taken advantage of the decadent period.
However, some observe a dark future coming: there are experts, such as Harry Dent, who talk about a prolonged bear market until 2024. For him, BTC could fall to a range between 3,000 and 7,000 dollars at that moment. The analyst Nakamotolist also highlighted the possibility of the digital asset crashing to $17,000.
In both cases, bitcoin would have to hit another unprecedented negative milestone: break lower to a bull market cycle level before the current one. Based on the reading of those cycles, bitcoin should never go below $20,000, but only the market will have the last word about it.
By: Jenson Nuñez
