Bitcoin ends week ‘on the edge’ as S&P 500 officially enters bear market

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 exchanges provided no respite.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

BTC price reflects lackluster stock performance

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

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

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

“Another wacky day in the stock market. Dow Jones -500 early in the day, then recovers all and closes +8,” popular Blockchain Backers Twitter account commented on the overall performance of the US market.

“Bitcoin is still on the brink.”

Like Cointelegraph reportedvarious sources had been calling for Bitcoin to fall again in a manner similar to last week’s capitulation event.

Continuing the conservative macro outlook, another Twitter commentator, PlanC, argued that external changes could still drive Bitcoin down significantly from current levels.

“If the crypto market was in a bubble, I would say 25,000-27,500 is the bottom for Bitcoin, but there is a decent chance that macro factors will take us down to 22-24,000. A significant black swan, 15-20,000 becomes a possibility”, part of a Tweeter the day read.

Looking beyond stocks, the US Dollar Index (DXY) was consolidating after a strong retracement from 20-year highs.

US Dollar Index (DXY) 1 hour candle chart. Source: Trading View

May rivals 2021 for worst on record

Ten days from the end of the month, BTC/USD was likely to see May 2022 as the worst month in terms of returns in its history.

Related: Bitcoin Must Defend These Price Levels to Avoid a “Much Deeper” Drop: Analysis

Data from on-chain analytics resource Coinglass showed monthly returns currently totaling -22% for Bitcoin, the biggest decline of any year except -35% in 2021.

2022, the collective figures confirmed, was also the worst performing first five months of the year for Bitcoin since 2018.

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

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