The roller coaster that has occurred over the past seven days has resulted in another weekly candle closed in the red for bitcoin. As such, the cryptocurrency made history in a rather negative week as it is the first time it has closed in the red for seven consecutive weeks.

BTC makes it 7 in a row

CryptoPotato reported last week on adverse price action that led to lower weekly closes for bitcoin for six consecutive weeks – something the asset had not seen in nearly eight years. However, the last seven days turned out to be even more violent.

The worst day for trading came on May 12, when BTC fell from just over $30,000 to its lowest price position since late December 2020 at $25,300. Although it rebounded quite immediately and recouped several thousand dollars in value within days, the cryptocurrency still closed the weekly candle lower than the previous one.

This meant that it had created its longest bearish weekly streak with seven consecutive candles in the red (on Bitstamp).

BTCUSD. Source: Trading View

It should be noted that the new weekly candle that started a few hours ago is red again, but a lot can change in the crypto markets in seven days.

Extreme fear everywhere

With the aforementioned negative streak, it is expected that the popular Fear and Greed Index went deep into “extreme scare” territory. The metric measures various data including surveys, volatility, social media comments, and more to determine the general sentiment within the community regarding BTC. The results range from 0 to 100 (extreme fear to extreme greed).

The chart below shows that the index plunged to its lowest position (extreme fear) since the COVID-19 crash, posting 9 over the weekend. Although it has recovered above 10 at present, the metric is still well below fear levels.

Bitcoin Fear and Greed Index.  Source: Alternative.me
Bitcoin Fear and Greed Index. Source: Alternative.me

However, it should be noted that bitcoin tends to respond well in these times of apparent desperation. For example, during the COVID-19 crash, the index went all the way down to 8 when BTC fell more than 50% in one day. Over the following weeks and months, however, the cryptocurrency not only recouped all of its losses, but continued to register new highs before finally charting a new ATH by the end of the year.

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