Bitcoin seems to be on the verge as trading volumes dry up. The cryptocurrency pioneer looks oversold and is in a rapidly declining trend, trying to find support.
If BTC closes its ninth red candle on the weekly chart, the flagship cryptocurrency will set a new record. Since March 28, its market value has fallen by more than 22,800 points, changing from a high of $ 48,222 to a low of $ 25,365.
Despite significant losses, bitcoin still looks weak. It seems that the damage done to investors by the deadly spiral of Terra LUNA and UST was too great to overcome. Even the fact that Terraform Labs successfully transferred new LUNA tokens to previous LUNA and UST owners did not help to improve market sentiment. The index of fear and greed is at its lowest level, while trade in all directions continues to decline.
Indeed, bitcoin seems unstable because investors are not particularly interested. $ 29,000 was held in support for nine weeks, but if BTC loses such an important fulcrum, it is likely that there will be a 22% drop to the 200-week moving average of about $ 22,300.
Given the scale of cryptocurrency losses over the past nine weeks, there is reason to believe that bitcoin has reached oversold conditions. In that case, BTC will have to return $ 31,000 in support as soon as possible to lure investors back to the market. Overcoming such a complex hurdle could lead to a surge in buying pressure, which could raise prices to $ 34,700.