Bitcoin ends week ‘on the edge’ as S&P 500 officially enters bear market

Bitcoin (BTC), which suffered its most recent losses on May 21, after Wall Street trading offered no respite, was unable to recover these losses.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

BTC price reflects drab stocks performance

Cointelegraph Markets Pro and TradingView data showed that BTC/USD traded at a lower level than $28,700 in the weekend. After that, it increased by around $500.

The pair was down 4.7% from its previous day’s $30,000.00 highs. At the time of writing, it looked rangebound after the volatile last trading day for the United States stock indices.

Despite the fact that the S&P 500 fell at the open, it reversed and traded at 20% below its peak from last year.

The S&P 500 has officially entered a bear market pic.twitter.com/N1lrcBdziT
Fintwit (@fintwit_news), May 20, 2022

“Another crazy day in the stock markets. Dow Jones -500 in the morning, but then recovers it and closes +8.” Popular Twitter account Blockchain Backers posted comments about U.S. market performance.

“Bitcoin is still just teetering at the edge.”

Cointelegraph reported that several sources have called for Bitcoin’s fall in a similar fashion to last week’s capitulation.

PlanC, a fellow Twitter commentator, said that Bitcoin could still be significantly lower than its current level due to external shifts.

“If the Crypto market were in a bubble, I would say 25k-27.5k is the Bitcoin bottom. However, there is a good chance that macro factors will drag us down to 22-24k. A tweet from the day read: “Significant black swan, 15-20k becomes possible.”

The U.S. dollar Index (DXY), which is besides stocks, was consolidating following a strong retracement of twenty-year highs.

U.S. dollar index (DXY), 1-hour candle chart Source: TradingView

May is competing with 2021 to be the worst record.

BTC/USD is at risk of May 2022 becoming the worst month in terms of returns with ten days to go.

Related: Bitcoin must protect these price levels in order to avoid a’much deeper fall’: Analysis

Coinglass data showed that Bitcoin’s month-to-date returns are currently at -22%, which is the largest decline of any year other than 2021’s 35%.

The collective numbers confirmed that 2022 was the worst-performing month for Bitcoin in the first five months of 2018.

Screenshot of BTC/USD monthly returns chart Source: Coinglasscom. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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