bitcoin [BTC] The saga doesn’t look like it’s over as the flagship cryptocurrency has again fallen below $30,000. Kingcoin has seen signs of recovery after the collapse of Terra, but the crypto gods appear not to be satisfied with the coin. Now the question is, why BTC is down again and why we are seeing a short-term recovery for investors.
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Bitcoin Price Is Again Below $29,000 After Terra Crash There is a proposal that is creating a macro headwind that is responsible for bringing the BTC price down to support levels.
In particular, the S&P 500 and NASDAQ posted losses for the seventh week in a row. This is the longest streak of losses since the collapse of the dot-com bubble in 2001. The Dow is also on the longest losing streak since the Great Depression of 1932.
Santiment Twitter It also displayed the correlation between BTC and the S&P 500 and how the upward movement of BTC was ‘broken’ by the ‘stocks’. Major indices are witnessing free fall, with warning signs of impending recession and inflation.
Nevertheless, Kingcoin saw the bulls hit the $30,000 mark and lose their fight against the bears. Fear and Greed Index at the Time of Reporting stood on 13 stands for ‘extreme fear’.
What does the chart say?
The metrics are also consistent with the aforementioned information, sending worrisome signals throughout the Bitcoin network. Investors’ fear can be detected even with low trading volume.
According to Glassnode report, trading volume fell to a four-month low on May 21. March 2022 trading volume was extremely low at 145,015.1 BTC.
Another indicator that underlines the bearish stance on Bitcoin’s bitterness is the NVT signal. On May 21st, Bitcoin’s NVT signal hit an astonishing four-year low of 235.2. Depending on the glass node.
This suggested that Bitcoin is approaching the regional market bottom, which historically represents a period of accumulation. However, there is an underlying FUD sentiment in the current market due to the discounted price of the asset.
Wait… there’s more
Interestingly, the famous cryptocurrency analyst Plan B recently Tweet It hints at a reversal of the trend in BTC price. Plan B’s price predictions are widely used in the crypto community’s analysis given his 1.8 million Twitter followers.
Realized Price / Moving Average (RPMA, purple) is #Bitcoin cycle best. Relative Intensity Index (RSI, yellow) is similar but misleading at critical times (eg 2H 2021). The good news is that the bear market is almost over. Wait for RPMA and RSI to start rising again. pic.twitter.com/Naz2zPV071
— Plan B (@100 trillion USD) May 20, 2022
Plan B uses “Realized Price/Moving Average (RPMA)” and RSI indicators to conclude that the bear market is nearing its end. Confidence in BTC recovery is growing with Plan B suggesting that RPMA is the “best” indicator for Bitcoin. Despite all the bearish signs, Plan B looked hopeful for a quick recovery.
Well, no matter what indicators or analysts say, only time can reveal the future price trajectory of Bitcoin.