- Bitcoin is looking weak after enduring a seventh weekly candle in a row
- Having failed to crack $31,000, Bitcoin is back to crucial support
- Likely rate hikes in June and July are giving traditional markets the jitters
Bitcoin buyers are still thin on the ground as large numbers of would-be buyers anticipate lower numbers. Bitcoin starts the week on the back of a record seven red weekly candles, with last week’s drop to $25,500 on some exchanges failing to incite a v-shaped recovery. Fears over how traditional markets will open have converged with fallout from the Terra USD/LUNA debacle to keep buyers away from Bitcoin, although the key level of $30,000 remains intact.
Bitcoin Looking Weak After Seven Red Weeks
As we can see from the weekly Bitcoin chart, the dip to the $25,500-$26,500 region last week has not been followed by the kind of buying action that would suggest a v-shaped recovery, with price instead reversing in the early hours of the trading week:
Crypto Twitter has been busy debating whether this represents the bottom for Bitcoin or not, but the fact is that the lack of buying power post-dip was illustrative of a lack of desire from big players to snap up bitcoin, even at such a discount. This indeed suggests that many are waiting for lower prices, and only time will tell if this was a wise move.
Much depends on how traditional stocks performing at the opening bell today, particularly the Nasdaq, which is at a crucial point having fallen below strong support:
Early signs are that it will treat this support line as resistance, particularly with Federal Reserve Chair Jerome Powell saying last week that he is prepared to be unpopular and encourage higher interest rate hikes in June and July to tackle inflation. This has scared equities markets which has a knock on effect on Bitcoin, despite some high profile crypto influencers claiming that Bitcoin doesn’t care about what the Fed does.
The lack of followthrough suggests that those who missed out on Bitcoin at sub-$27,000 might get another chance perhaps as soon as this week, with accumulation likely continuing throughout the summer months until the Federal Reserve brings inflation under control and money can start to flow back into the markets again, assuming that we aren’t into a full on bear market by that point.