Bitcoin Ends Week ‘On the Edge’ as S&P 500 Officially Enters Bear Market

Bitcoin (BTC) struggled to recoup its latest losses on May 21 after Wall Street trading failed to provide any respite.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

BTC Price Reflects Monotonous Stock Performance

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading dipped below $28,700 over the weekend, later adding around $500.

Down 4.7% from the previous day’s highs of $30,700, the pair looked firmly range bound at the time of writing, after US stock indices posted a volatile last trading day. of the week.

The S&P 500 managed to reverse after initially falling at the open, however it confirmed bear market trends, trading 20% ​​below its highs from last year.

“Another crazy day in the stock market. Dow Jones -500 early in the day, then takes it all back and closes +8,” popular Blockchain Backers Twitter account commented on the broader performance of the US market.

“Bitcoin still teetering on the brink.”

Like Cointelegraph reportedseveral sources had called for Bitcoin to drop once again similar to last week’s capitulation event.

Continuing the conservative macro outlook, Twitter commenter PlanC argued that external changes could still see Bitcoin drop significantly from current levels.

“If the cryptocurrency market was in a bubble I would say 25k to 27.5k is the bottom of Bitcoin but there is a decent chance macro factors will drag us to 22-24k. Significant black swan, 15-20k becomes in a possibility. part of a cheep on the day read.

Beyond equities, the US dollar index (DXY) was consolidating after a sharp pullback from twenty-year highs.

1 hour candlestick chart of the US dollar index (DXY). Source: TradingView

May competes with 2021 for the worst record

With ten days left in the month, BTC/USD risked May 2022 being the worst in terms of returns in its history.

Related: Bitcoin Must Defend These Price Levels to Avoid ‘Much Deeper’ Drop: Analysis

Data from on-chain analytics resource Coinglass showed month-to-date returns currently totaling -22% for Bitcoin, the largest draw of any year except 2021’s -35%.

2022, the collective figures confirmed, was also the worst first five-month performance for Bitcoin since 2018.

BTC/USD monthly return chart (screenshot). Source: Coinglass

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