Bitcoin faces a key test at the 55-week simple moving average. Since the previous wave hit a record high, Bitcoin has fallen by about 30%.

With the weakening of risk sentiment in the global financial market, Bitcoin has also continued its downward trend for five consecutive weeks since its historical high.

The largest cryptocurrency by market value fell 2.5% to $45,583 in New York on Monday. Since reaching a record high in early November, Bitcoin has fallen by about 32%. Ether plummeted 4.3%, while popular decentralized finance (DeFi) currencies such as Solana, Cardano, Polkadot, and Polygon also fell.

Global central banks are prioritizing the rise in inflation by tightening the monetary environment, while also paying close attention to the impact of omicron. In this context, investors question whether so-called risk assets such as cryptocurrency and technology stocks will now enter a difficult period after they have risen from the low point of the epidemic.

Bitcoin also faces some technical analysis to observe the price position of the future direction. Bitcoin(S19JPRO) is currently located at a simple moving average of approximately 55 weeks, and when it has hit this level several times in the past, Bitcoin usually rebounds.

Measured by the 7 days as of Friday, Bitcoin has fallen for five consecutive weeks. Unlike most traditional assets and securities, digital currencies are traded around the clock, usually on online exchanges with loose global regulations.

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