The crypto market is showing signs of a rebound after Bitcoin (ticker symbol: BTC) sets a new record.
- Bitcoin Rebounding Despite 9 Week Losing Streak
- Crypto Market Showing Signs Of Rebound
Bitcoin Rebounding Despite Losing Streak
The crypto market, led by Bitcoin, has struggled during the month of May. Bitcoin, in particular, recorded its ninth straight week of losses. However, it finished the week trading in the $30,700 USD range, a price that would have made it avoid the dubious distinction.
Bitcoin had already set the record earlier this month which was previously 6 weeks. Suffice it to say, it’s been a tough stretch for Bitcoin, and consequently, for all of crypto. The total global market cap was at 1.8 trillion at the beginning of May, but it has since fallen to just around 1.3 trillion.
The drawdown shouldn’t be surprising, considering that the month of May saw the destruction of Luna and UST. As those two disintegrated, Bitcoin was sold off in droves to keep the Luna ecosystem afloat. As of press time, Bitcoin is trading in the $30,400 range.
Crypto Market Showing Signs Of Rebound
Meanwhile, the crypto market is up almost 4% in the last 24 hours. This, despite the fact, that Memorial Day weekend is underway in the United States. Holiday weekends are usually feared. Though, last year’s Memorial Day weekend didn’t play out that bad either.
Despite the uptick, the Fear and Greed Index (FGI) is worse than it was yesterday and a week ago when it was at 14. It’s currently at a low of 10. Looking at a yearly time frame, an FGI of 10 is about as bad you can get, though, it did hit a yearly low of 8 on May 17th. The point being: it’s hard to see it getting much worse from here.
Extreme fear is categorized by panic selling, but panic selling itself also has its limits. At some point selling stops because it’s no longer worth it. However, for the market to rebound, buying in droves needs to start for a rebound to occur. When it does most traders are far enough from profit that we should see some positive price action for a fair amount of time.
When that positive price action will happen for the crypto market is unclear. Sure, May is almost over (“sell in May and go away”), but June wasn’t great for crypto last year. Not to mention, those pesky macro concerns are still out there. Nevertheless, it’s not a bad idea to remember that old adage, “be greedy when others are fearful.” It’s also worth considering how much you can withstand being greedy while everyone else taps out.
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