Bitcoin Weekly Review

For the ninth week in a row, bitcoin has been depreciating against the US currency, while for the last thirteen days the BTC/USDt pair has maintained a sideways movement between $28,000–$31,500. Since the beginning of the week, the losses are 4.30%. The price is trading at $29,020, near the bottom of the range.

In recent days, a correlation has been recorded between stock indices and cryptocurrencies. The S&P500 index closed the week up 6.58% at 4158 points, while crypto investors began to sell altcoins fearing a further market collapse. The bitcoin exchange rate fixed below 30 thousand. All attempts to resume growth ended in failure. The information pressure about the upcoming collapse forced many to leave the market with losses.

In the week from May 23 to May 28, altcoins sank very strongly. The share of bitcoin increased from 44.7% to 46.0%. Market capitalization decreased by $87 billion to $1.198 trillion.

If Bitcoin continues to decline, smart contract-enabled blockchains Solana (SOL), Avalanche (AVAX), Polkadot (DOT), and NEAR Protocol (NEAR) could lose more than 30% of their value from current prices.

The technical picture for bitcoin still looks unstable, despite the renewed growth of the S&P500 and Nasdaq stock indices, as well as a downward correction in the dollar index. So let's say, the external background for the crypto market has changed in a positive direction.

At the same time, investors remain intimidated - they refuse to buy back cheaper coins. It can be seen that now there are extremely negative moods on the part of cryptocurrency holders. The fear index is 13 points. A minimum of 8 points was recorded on 17 May. In theory, the peak of fear has been passed. Over the past nine red weeks, everyone should get used to the bear market.

Exactly the same sentiments we saw on other bottoms. It is worth recalling that bitcoin began to rise in price when the fear index dropped to the 8-10 points zone. According to my calculations, the growth phase begins in the period May 30 - June 6. Buyers need to close next week above $31,700 to confirm a time window for growth. If the price consolidates below the $28,000 level, then it could easily drop to $20,000 or even $13,000. The depth of the strait will depend on institutional players. If they do not run away from the market, then we will not sink much. Reversals happen when they are least expected.