Bitcoin (BTC) bulls sought a $30,000 rematch later on May 12, as the market recovered from its lowest level since late 2020.
DXY gets bigger as BTC recovers
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD trading above $29,500 after Wall Street opened.
The pair was volatile but was showing some signs of new capitulation, with a sea of long positions on the major exchange Bitfinex, which analysts believed were firmly convinced not to revert to lower levels.
Bitfinex managed to set long new all-time high In leverage on Da.
Meanwhile, BTCUSD prices are skyrocketing @bitfinex pic.twitter.com/BC7pTZOPLR
— Paolo Ardoino (@paoloardoino) 12 May 2022
There are two possibilities with this chart:
1. It’s just noise.
2. Bitfinex has been absorbing all capitulation for a long time and gearing up for a massive uptrend.take your pick.$BTC pic.twitter.com/NlujLGkED1
— Miles J Creative (@JohalMiles) 12 May 2022
“There should be an index bounce, through which we can get some more relief here on the crypto markets,” said Cointelegraph contributor Michael van de Pope. forecast In one of his latest tweets.
“If we break $29.6K, we will probably see a slight squeeze for bitcoin in the $32K areas.”
Van de Poppe also highlighted the strength of the US dollar as a factor to keep an eye on bitcoin’s next move.
The US Dollar Index (DXY), inversely correlated with bitcoin, was in no mood to improve as it began to build up to a twenty-year high on 11 May after a brief decline.
Within an inch of Luna Crater Void
However, far more shocking than any BTC price move, were the events of the blockchain protocol Terra.
RELATED: Terra will burn $1.4B UST and stake 240M LUNA to ‘stop the bleeding’
The firm’s in-house token, LUNA, has lost 97% of its value, falling below a US cent that day, marking a pivotal moment in its rapid dissolution.
As the turmoil over the fate of sister token, TeraUSD (UST), continued, Luna Markets lost all trust, with authorities completely halting the Tera blockchain.
The Terra Blockchain was officially halved at a block height of 7603700. https://t.co/squ5MZ5VDK
Terra validators have decided to halt the Terra chain to prevent regime attacks after serious $luna Inflation and significantly lower cost of attack.
— Terra (UST) Powered by Luna (@terra_money) 12 May 2022
At the time of writing, LUNA/USD did manage to stage a form of recovery, climbing up to $0.014 per token.
Tether (USDT), the largest stablecoin that had seen its dollar peg moving amid the catastrophe, meanwhile moved closer to regaining it, trading at $0.997.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.
