Friday, May 27, 2022

Bitcoin is Getting Ready for a Sharp Move in the Short Term

Bitcoin is Getting Ready for a Sharp Move in the Short Term

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Hi Crypto Academy Network,

Fears of a recession, supply chain issues, a China lockdown, and tightening monetary conditions led investors to trim exposure to risky assets last week. The Dow Jones Industrial Average recorded its firstever eighth-straight weekly loss since 1923. Identically, Bitcoin also made history by closing in the red for the eighth consecutive week.

Although the US equities markets made a strong comeback on May 23, Bitcoin continues to struggle above $30,000. One of the reasons could be that after the collapse of TerraUSD and LUNA, institutional investors are likely to tread cautiously as the crypto space could come under regulatory scrutiny.

Bitcoin’s recovery attempts repeatedly turned down from the downtrend line in the past few days. This suggests that bears are defending the level with vigour.

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