The rollercoaster that transpired in the past seven days resulted in another weekly candle closed in the red for bitcoin. As such, the cryptocurrency made history in a rather negative week as this is the first time it closed in the red for seven consecutive weeks.
BTC makes it 7 in a row
CryptoPotato reported last week on adverse price action that led to lower weekly closes for bitcoin for six consecutive weeks – something the asset had not seen in nearly eight years. However, the last seven days turned out to be even more violent.
The worst trading day came on May 12, when BTC slumped from just over $30,000 to its lowest price position since late December 2020 at $25,300. Despite bouncing off rather immediately and recovering several thousand dollars of value in days, the cryptocurrency still closed the weekly candle lower than the previous one.
This meant that it had created its longest bearish weekly streak with seven consecutive candles in the red (on Bitstamp).
It’s worth noting that the new weekly candle that started hours ago is once again red, but a lot can change in the crypto markets within seven days.
Extreme fear everywhere
With the aforementioned negative streak, the popular fear and greed index is expected to have gone deep into “extreme fear” territory. The metric measures various data including surveys, volatility, social media comments, and more to determine the general sentiment within the community regarding BTC. The results range from 0 to 100 (extreme fear to extreme greed).
The graph below demonstrates that the Index plunged to its lowest position (extreme fear) since the COVID-19 crash showing 9 during the weekend. Despite recovering to above 10 as of now, the metric is still well within fear levels.
However, it should be noted that bitcoin tends to respond well in these times of apparent desperation. For example, during the COVID-19 crash, the index went all the way down to 8 when BTC fell more than 50% in one day. Over the following weeks and months, however, the cryptocurrency not only recouped all of its losses, but continued to register new highs before finally charting a new ATH by the end of the year.
