Bitcoin (BTC) bulls wanted a rematch from $30,000 on May 12, as the market rebounded from its lowest levels since late 2020.
DXY continues to rise as BTC recovers
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair trading above $29,500, holding higher after Wall Street opened.
The pair was volatile, but with few signs of capitulation, with a sea of longs on Bitfinex showing what analysts believed was conviction that the lower levels would not return.
Bitfinex longs even managed to establish a new all-time high leverage on the day.
In the meantime BTCUSD longs are skyrocketing on @bitfinex pic.twitter.com/BC7pTZOPLR
– Paolo Ardoino (@paoloardoino) May 12, 2022
Meanwhile BTC/USD longs soar on Bitfinex.
There are two possibilities with this chart:
1. It’s just noise.
2. The Bitfinex longers are absorbing all the capitulation and gearing up for massive upside.Take your pick.$BTC pic.twitter.com/NlujLGkED1
— Miles J Creative (@JohalMiles) May 12, 2022
There are two possibilities with this chart:
1. It’s just noise.
2. Bitfinex longs are soaking up all the capitulation and preparing for a massive rally.Choose your option.
“Indices should bounce, through which we could be getting some more relief in crypto markets,” forecast Cointelegraph contributor Michaël van de Poppe in one of his latest tweets.
“If we break above $29,600, we will likely see a bit of a choke of shorts towards the $32,000 regions for Bitcoin.”
Van de Poppe also highlighted the strength of the US dollar as a factor to watch, in relation to Bitcoin’s next move.
The US Dollar Index (DXY), inversely correlated to Bitcoin, was in no mood for correction as it started to build on 20-year highs after a brief drop on May 11.
Moon is nothing to reach 0
Far more shocking than any BTC price movement, however, were the developments on the Terra blockchain protocol.
The firm’s native token LUNA, having lost 98% of its value, proceeded to sink below a single cent on the dollar on the day, marking a watershed moment in its rapid devaluation.
As the turmoil over the fate of sister token TerraUSD (UST) continued, LUNA markets seemed to lose all faith, with executives eventually halting all transactions on the Terra blockchain altogether.
The Terra blockchain was officially halted at a block height of 7603700.https://t.co/squ5MZ5VDK
Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $MOON inflation and a significantly reduced cost of attack.
— Terra (UST) Powered by LUNA (@terra_money) May 12, 2022
LUNA/USD made a small recovery, rising to $0.014 per token at press time.
The largest stablecoin, Tether (USDT), which has seen its peg to the dollar hit by chaos, has come close to recovering it, trading at $0.997.
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