Bitcoin has set a new anti-record

Bitcoin seems to be on the brink as trading volumes are drying up. The pioneering cryptocurrency looks oversold and is in a steep downtrend, trying to find support.

If BTC closes its ninth red candle on the weekly chart, the flagship cryptocurrency will reach a new record. Since March 28, its market value has fallen by more than 22,800 points, moving from a high of $ 48,222 to a low of $ 25,365.

Despite the significant losses, bitcoin still looks weak. It seems that the damage done to investor confidence by the death spiral of Terra LUNA and UST was too great to overcome. Even the fact that Terraform Labs successfully transferred new LUNA tokens to previous LUNA and UST holders did not help to improve market sentiment. The Fear and Greed Index is at an all-time low, while trading volumes in all directions continue to decline.

Indeed, bitcoin seems to be volatile as investors are not showing much interest. the $ 29,000 level has been held as support for nine weeks, but if BTC loses such an important support point, it is likely that there will be a 22% drop to the 200-week moving average at around $ 22,300.

Given the scale of the cryptocurrency’s losses over the past nine weeks, there is reason to believe that bitcoin has reached oversold conditions. In this case, BTC will have to regain $ 31,000 as support as soon as possible to lure investors back to the market. Overcoming such a difficult hurdle could trigger a surge in buying pressure, which could push prices up to $ 34,700.