Bitcoin is on track for its sixth consecutive week of losses, its longest losing streak to date. A confirmation of this pattern is likely to portend additional losses for the most popular cryptocurrency in the world.

As a result, tremendous panic has returned to the bitcoin market following its recent downturn, which, according to the data, may have been caused by whales.

This week, Bitcoin had one of its most precipitous declines in 2022, as investors anticipated a drying up of cash due to rising interest rates and sluggish economic development.

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The broader Bitcoin market continues to remain in the red zone. (Shutterstock)

BTC Crashes To $34,637

Sunday’s Coingecko data indicate that Bitcoin has declined by 7.5% over the previous week and is trading near its lows for 2022 at $34,637.

The Bitcoin Fear and Greed Index (BFGI) has once again reached the “extreme fear” level, as the price of cryptocurrencies continues to decline.

The Fear and Greed Index is at its lowest level since late January, with a reading of 18 as of this writing, compared to 23 yesterday.

In fact, the metric has not been in such a terrible shape since late January, when the price of Bitcoin dropped to $33,000.

March’s highs for Bitcoin have rapidly eroded. The cryptocurrency is 34% lower than its 2022 peak of $47,937.

The Fear and Greed Index has dropped to its lowest level since late January, with a rating of 18 as of this writing, down from 23 the day before. (Image credit: alternative.me)

The validation of a six-week losing skid is likely to send traders a very pessimistic signal and reduce their positioning for a rebound. This could result in further BTC losses.

BTC fell by more than $10,000 in a single month and concluded the month below $40,000.

May has not started off nicely either. BTC soared to $40,000 following the most recent FOMC meeting, during which the Federal Reserve announced that it will hike interest rates by 50 basis points instead of 75 basis points. However, this increase was short-lived.

Analysts now anticipate a Bitcoin price bottom as low as $28,000, which is the average realized price. A break of this level will result in losses for the majority of long-term BTC holders, potentially provoking further selling.

BTC total market cap at $658 billion on the weekend chart | Source: TradingView.com

Bitcoin Fear & Greed Index: Discouraging

As evidenced by the Fear and Green Index, this price decline resulted in a shift in the general market sentiment. The statistic displays final findings ranging from 0 (extreme fear) to 100 (extreme greed).

By analyzing community social media posts, polls, volatility, trading volume, etc., the asset’s sentiment is determined.

Bitcoin is not alone in its losses. In the previous month, the whole crypto market capitalization has decreased by approximately $400 billion.

Avalanche (AVAX) and Terra (LUNA) are among the worst-performing major cryptocurrencies during the previous 30 days.

Since mid-April, Bitcoin has been in the fear zone, but the most recent price drops have pushed the cryptocurrency into acute panic.