Bitcoin is heading for the ninth consecutive red weekly candle

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

Bitcoin looks oversold but lacks support

The leading cryptocurrency is in a sharp downtrend as it struggles to find support.

Bitcoin is about to hit a new record by closing the ninth consecutive red candle on the weekly chart. The major cryptocurrency has shed more than 22,800 points in its market capitalization since March 28, rising from $48,222 to $25,365. BTC is still looking weak despite the huge losses incurred.

The damage to investor confidence caused by the death spiral in Terra’s LUNA and UST was too great to be overcome. Although Terraform Labs has been successful in dropping new LUNA tokens to former LUNA and UST holders, it has done little to improve market sentiment. The Fear and Greed Index is at its lowest levels as trading volumes continue to dry up.

In fact, Bitcoin appears to be in a precarious position as investors are showing little interest. $29,000 held as support for nine weeks, but if BTC loses such a vital foothold, a 22% pullback towards the 200-week moving average around $22,300 is likely to materialize.

The scale of losses that Bitcoin has incurred over the past nine weeks makes it reasonable to suggest that it has reached oversold conditions. If this is the case, BTC will have to recover $31,000 in support as soon as possible in order to lure investors back into the market. Overcoming such a difficult hurdle could lead to higher buying pressure that could push prices towards $34,700.

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