18 May 2022 05:00, UTC
Reading time: ~2 m
Bitcoin began the week with another testing of the lows, which led to a rebound in yesterday’s session. On Tuesday, all risky assets rose, but analysts note a weaker result of the cryptocurrency, relative to the NASDAQ stock index, which closed the day with a result of + 2.76%.
Given the higher volatility rates of Bitcoin, with such an increase in stock indices, one could count on at least a five percent rebound in the quotes of the digital currency.
The recent drop in BTC led to a decrease in the Crypto Fear index to eight points. This is a two-year low, the achievement of which almost always led to a sharp increase in the cryptocurrency market.
The weakness of Bitcoin on yesterday’s rebound does not allow speculators to protect the important level of $ 30,000. Each successive breakout of this line opens the bears’ exit to the zone with a large gap of technical supports that are not able to stop the fall to $ 21,000.
The current trend of BTC and the stock market is completely dependent on the inflation indicators of the Eurozone and the published forecasts of the ECB. Investors expect a slowdown in the growth rate of consumer prices.
The rest of the week will be spent assessing consumer reactions to inflation, as reflected in retail sales in developed countries, property purchase volumes and current energy price levels.
According to forecasts, the stock market has a ghostly chance to stop the fall. Bitcoin can at any time on the negative indicate a new bottom due to the fact that it does not find now a sufficient number of investors ready to enter BTC at the level of $ 30,000.
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