Bitcoin (BTC), which had fallen to ten months lows on May 11, saw a rebound as Wall Street trading began, giving bulls some relief.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
One day, $860 million more crypto liquidations
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD erased the effect of above-expectation US inflation data. It reached $32,000 on Bitstamp
The pair has been in a tailspin since April’s Consumer Price Index print (CPI), with $30,000 giving place to levels not seen for a while.
The mood remained cautious despite the ongoing turmoil surrounding Terra, its LUNA tokens, and TerraUSD (UST), co-founder Do Kwon. The Crypto Fear & Greed Index measured sentiment on May 10 with a normalized score (10/100), one of the lowest ever recorded.
Screenshot: Crypto Fear and Greed Index Source: Alternative.me
Crypto Ed, a popular trader and forecaster of CPI news, predicted that the price could rise to $28,000 more or fewer. He also stated that the downside was “not over yet.”
#BTC must close above orange weekly to confirm support of $32000. So, what market structure in the short-term could allow for such a return to $32000 above? At this time, a potential 4HR Ascending Triangle + Bullish Divergence could do it Worth watching$BTC #Crypto #Bitcoin pic.twitter.com/Bo6C1YOVp3
— Rekt Capital (@rektcapital) May 11, 2022
According to Coinglass data, $860 million was also liquidated in cross-crypto transactions during the 24 hours prior to this writing.
Chart of crypto liquidations. Source: Coinglass
Is Bitcoin bad? It could get worse
Apart from Terra, the attention was also on Bitcoin hard forks throughout the day.
Related: Bitcoin price will crush BCH and BSV in 2021
Bitcoin Cash (BCH), with a peak of 0.1829 BTC December 2017, had the unfortunate honor of reaching new all-time lows for BTC terms on May 11.
BCH/BTC 1-month candle graph (Binance). Source: TradingView
BCH now trades at 0.0068 BTC. This is in contrast to its spin-off Bitcoin SV, (BSV), who likewise set a new floor for BTC.
BSV/BTC 1-week Candle Chart (Bitfinex). Source: TradingView
“Bitcoin is going to remind you why it’s king.” Benjamin Cowen, a commentator, wrote that ALT / BTC values are up for a reckoning.
“The story has been told before and it will be repeated again. You are now 60% BTC dominant.
According to CoinMarketCap data, Bitcoin’s market dominance was 43.7% at the time this article was written. This is an increase of around 4% over the January lows of 2022.
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