Bitcoin Heads for Ninth Consecutive Red Weekly Candle

Bitcoin is Overpriced, but there’s no support

As it struggles for support, the pioneer cryptocurrency is currently in a steep downtrend.

Bitcoin is poised to set a new record when it closes its ninth consecutive week-end red candle on the weekly charts. Since Mar. 22,800 points have been lost in market value for the flagship cryptocurrency. 28. The price of Bitcoin has fallen from $48,222 to $25,365. BTC is still considered weak, despite the large losses.

The damage to investors’ confidence brought on by  Terra’s LUNA and UST death spiral has been too great to overcome. Terraform Labs has successfully airdropped new LUNA tokens at previous LUNA or UST holders. But it has not helped market sentiment. The Fear and Greed Index remains at its lowest point, while trading volumes across the board are continuing to dry up.

Bitcoin seems to be in a precarious place with very few investors. BTC has been supported by $29,000 for nine weeks. However, if BTC loses such a crucial foothold, a 22% decline towards the 200-week moving mean at $22,300 would likely occur.

Bitcoin price chart
Source: TradingView

Given the extent of Bitcoin’s losses in the last nine weeks, it is reasonable to conclude that the market has reached oversold levels. In order to attract investors back into the cryptocurrency market, BTC would need to gain $31,000 support. This might cause a surge in buying pressure, which could lead to prices reaching $34,700.

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