After seven days of rollercoaster events, another weekly candle for bitcoin closed in the red. The cryptocurrency has made history by closing in the red for the seventh consecutive week.
BTC makes it seven consecutive times
CryptoPotato reported last Wednesday the negative price developments that caused bitcoin to close lower for six consecutive weeks – something it hadn’t seen for nearly eight years. The past seven days were even more violent.
BTC’s worst trading day was May 12, when it plunged from just above $30,000 to its lowest value position since December 2020, at $25,000.300. The cryptocurrency closed the week lower than its previous candle, despite rebounding quickly and recovering several thousand dollars in value within days.
It had thus created its longest bearish weekly streak of seven consecutive candles in red (on Bitstamp).
BTCUSD. Source: TradingView
It is worth noting, however, that the weekly candle that began hours ago is now red. However, much can happen in crypto markets in seven days.
Extreme Fear All Around
It’s not surprising that Fear and Greed Index has slipped into extreme fear territory due to the negative streak. This metric measures various data such as surveys, volatility and comments on social media to gauge the sentiments within the community regarding Bitcoin. The results range between 0 and 100 (extreme fear or extreme greed).
Below is a graph showing that the Index fell to its lowest (extreme fear), position since the COVID-19 crash, which was 9 over the weekend. The metric remains well within the fear level, despite recovering to over 10 by now.
Bitcoin Fear and Greed Index. Source: Alternative.me
It’s important to note that bitcoin is able to respond well to times of apparent despair. The Index dropped to 8 during the COVID-19 crash, when BTC was dumping by more than half a day. The cryptocurrency recovered its losses over the next weeks and months, but it also reached new heights, before finally charting a new ATH at the end of 2018.
Marla Brooks – Financial Analysis
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