Fantom Pains: Factors Behind The Crypto Markets Worst Weekly Performance

Bitcoin has failed to display strength during the past week and remains at risk of revisiting previous lows. The benchmark crypto seems to be negatively reacting to the current macro-environment, and an overall weakness from the buying side. Related Reading | Risk Aversion Pulls Crypto Market Down, Bitcoin Still Below $40K At the time of writing, the price of Bitcoin trades at $38,544 with a 1.2% loss in 24 hours and a correction of 10.8% in the last week. As NewsBTC reported yesterday, Bitcoin has been in an “equilibriums” with speculator dumping their coins for a loss as bulls attempt to create a floor. This status quo has existed since Q4, 2021, leading to BTC’s price moving sideways for months. Although constant, this state in the market is fragile and could break into either direction, but the downside seems likely. In the short term, bulls have failed to prevent BTC from breaking below and support at around $40,000. Data from Material Indicators (MI) continues to record an important stack of bid orders at around $36,000, and $35,000. In addition, as BTC moved into $40,000 recently, there has been a quick response from sellers which could be trying to keep the price suppressed. This dynamic in combination with low demand hints at a potential active attempt for entities trying to fill their bags at lower levels. A return into the mid-area around $40,000 could invalidate this theory. In a recent report, Arcane Research...