Bitcoin appears to be on a precipice as trading volumes dry up.

Key Takeaways

Bitcoin is about to close its ninth consecutive red candle on the weekly chart.
BTC has lost more than 22,800 points in market value over this period.  
Now, it all depends on whether BTC can hold above $29,000. 

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Bitcoin appears to be trading at a make-or-break point as its future depends on its ability to hold the $29,000 support level.

Bitcoin Looks Oversold But Lacks Support

The pioneer cryptocurrency is in a steep downtrend as it struggles to find support.

Bitcoin is about to make a new record by closing its ninth consecutive red candle on the weekly chart. The flagship cryptocurrency has shed more than 22,800 points in market value since Mar. 28, going from a high of $48,222 to a low of $25,365. BTC still looks weak despite the significant losses incurred.

The damage to investors’ confidence brought on by  Terra’s LUNA and UST death spiral has been too great to overcome. Although Terraform Labs successfully airdropped new LUNA tokens to previous LUNA and UST holders, it has done little to improve market sentiment. The Fear and Greed Index is at its lowest levels while trading volumes across the board continue to dry up.

Indeed, Bitcoin appears to be in a precarious position with investors showing little interest. $29,000 has held as support for nine weeks, but if BTC were to lose such a vital foothold, a 22% downswing toward the 200-week moving average at around $22,300 would likely materialize.

Source: TradingView

The magnitude of the losses that Bitcoin has incurred over the last nine weeks makes it reasonable to suggest that it has reached oversold conditions. If this were the case, BTC would have to regain $31,000 as support as soon as possible in order to lure investors back into the market. Overcoming such a difficult hurdle might generate a spike in buying pressure that could send prices toward $34,700.

Disclosure: At the time of writing, the author of this feature owned BTC and ETH.

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