Bitcoin (BTC) rebounded from ten-month lows on May 11, while the start of trading on Wall Street gave some relief to bulls.
One day, $860 million more in cryptocurrency liquidations
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair erased the impact of above-expectations US inflation data, hitting $32,000 on Bitstamp.
The printout of the Consumer Price Index (CPI) for April has sent the pair into a further tailspin, with $30,000 easing to levels not seen since July 2021.
As the turmoil continues over Terra, its LUNA and TerraUSD (UST) tokens, and co-founder Do Kwon, the mood remains firmly cautious. The Crypto Fear & Greed Index gauged sentiment with a normalized score of 10/100 on May 10, one of the lowest ever recorded.
“It could reach USD 28,000 more or less”, forecast popular Crypto trader Ed in his latest YouTube and Twitter update posted ahead of the IPC news, adding that he considered the downturn “not over yet.”
#BTC needs to Weekly Close above orange to confirm ~$32000 as support
So what short-term market structure could facilitate such a move back above ~$32000?
At this time, a potential 4HR Ascending Triangle + Bullish Divergence could do it
worth watching$BTC #crypto #bitcoin pic.twitter.com/Bo6C1YOVp3
— Rekt Capital (@rektcapital) May 11, 2022
BTC needs a weekly close above orange to confirm the ~$32,000 level as support
So what short-term market structure could facilitate a move back above ~$32,000?
Right now, a potential 4-hour Ascending Triangle + Bullish Divergence could do it.
worth watching
In the 24 hours to the time of writing this article, there were other cryptocurrency liquidations worth $860 million, data from on-chain monitoring resource Coinglass confirmed.
Is bitcoin wrong? It could be worse…
Away from Terra, attention was also focused on Bitcoin hard forks on the day.
Bitcoin Cash (BCH), which peaked at 0.1829 BTC in December 2017, had the dubious honor of hitting new all-time lows in BTC terms on May 11.
Now down to just 0.0068 BTC, BCH was ridiculed online with its spin-off Bitcoin SV (BSV), which also set a new low against BTC.
“Bitcoin will remind you why it’s king. ALT/BTC valuations are in a reckoning,” wrote commentator Benjamin Cowen.
“The story has been told in the past and it’s the same story again. See you with 60% BTC dominance.”
Bitcoin market dominance stood at 43.7% at the time of writing, up 4% from the 2022 lows set in January, according to data from CoinMarketCap.
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