Bitcoin Analysis – Towards a ninth week of decline in a row?

While equity indices are enjoying a resurgence this week, Bitcoin is struggling to keep up with the momentum. So much so that Satoshi Nakomoto’s digital currency is heading straight for a sad all-time high. To the point of wondering if investors are not withdrawing liquidity from the cryptocurrency market. This is to fuel the technical rebound both on Wall Street and on European financial markets.

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The latest technical analyzes show that BTC prices are hesitating around the critical and symbolic support of $30,000. And as such, sellers seem determined to drive home the point. Because with unfavorable technical signals that continue to strengthen, the current Bitcoin bear market could take on a considerable scale that no one imagined just two months ago.

Bitcoin – Towards a continuation of the bear market

Everything suggests that Bitcoin is about to chain a ninth consecutive week of decline. Which is a historic first during its existence. As a reminder, this black series started from the double check below the resistance of $46,000 and the 30-week moving average (MM30 weekly). Especially since the sound output tidy or horizontal channel (orange rectangle) from below highlights the shoulder-head-shoulder (ETE). But also the descending line initiated since its last ATH in November 2021.

As we discussed last week, it may well be that the bear market has not peaked yet. Indeed, the second low point that emerged following the breakout of the bottom of its range is far from fixed, to the chagrin of crypto investors. And the latter, rather than looking for pretexts for a favorable trend reversal, would do well to watch the evolution of the MM30 weekly.

Because, not only does it tend to take a downward slope. But more than that, it is slipping deep below the resistance of $46,000. And while this represents lagging technical signals on the downside, Weinstein’s Phase 4 is confirmed for now until proven otherwise. Moreover, a technical rebound on the $30,000 support would not hinder it, due to the proximity of major resistances. This without counting on a market context in favor of an approach of the type risk-off.

Bitcoin – Hesitation around $30,000

Since May 12, Bitcoin prices have been hovering around $30,000. So much so that we have the impression that a small tidy formed around this critical support in daily units. This shows a short-term neutralization between buyers and sellers. But whatever the outcome, keep in mind that BTC’s bear market since its last ATH remains far from being challenged anytime soon.

Daily Bitcoin Price Analysis - May 27, 2022

Like the MM30 weekly, the 200-day moving average (daily 200MA) slips below the resistance of $46,000. In such a way that its slope is parallel to the descending line. In this sense, there would be cause for concern about the momentum of the weeks to come. And even more, if the technical indicators were to see their rebounds fail below their respective float lines.

Assuming the $30,000 support holds, the hoped-for rebound could bump into the resistance of $35,000. A level that represents the low of its last tidy. And if not, Bitcoin could fall back to its lows of May 12, i.e. around the $26,000 support.

BTC – Return from dominance to major resistance?

Barring a weekly close above $30,264 (to be precise), a ninth consecutive week of Bitcoin decline would aggravate the crisis of confidence in the cryptocurrency market. And as the current uncertainties are not likely to be lifted any time soon, the technical rebound on the $30,000 support could well result in a new trap for buyers.

Bitcoin Dominance Analysis in Daily Units - May 27, 2022

Especially since favorable trend reversal levels remain a long way off. Because it would be necessary for the prices of BTC to successively overcome the descending line, the neck line of the ETE and the resistance of $46,000. And at the time of writing this analysis, the conclusion is clear: investors in the cryptocurrency sector should keep their feet on the ground.

At last, As for the dominance of Bitcoin (BTC.D), it is clear that it is taking off again. However, his comeback does not bode well. Because, in the event that the latter were to cross the resistance of 48-49%, an acceleration of the bear market for Bitcoin and cryptocurrencies could occur.


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