Bitcoin could target $32K, says trader as LUNA crashes below one penny

Bitcoin (BTC), bulls, demanded a rematch in the amount of $30,000 on May 12, as the market recovered after its lows since late 2020.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

DXY grows in importance as BTC recovers

Cointelegraph Markets Pro and TradingView data showed that BTC/USD traded above $29,500 and held higher after the Wall Street Open.

The pair was volatile, but showed few signs of new capitulation. Analysts believed that the sea of long positions on Bitfinex was displaying conviction over lower levels and not returning.

Bitfinex longs managed to reach a new record in leverage on the da.

In the meantime BTCUSD longs are skyrocketing on @bitfinex pic.twitter.com/BC7pTZOPLR
— Paolo Ardoino (@paoloardoino), May 12, 2022There’s two options with this chart: It’s noise. 2. Bitfinex’s longers are taking all the capitulation and preparing for huge upside. Take your pick.$BTC pic.twitter.com/NlujLGkED1
— Miles J Creative (@JohalMiles) May 12, 2022

Indicices should be moving, which could help us get some relief on Crypto markets here,” Michael van de Poppe, a Cointelegraph contributor, said in a tweet.

“If we break through $29.6K we’ll likely see a slight squeeze towards $32K areas for Bitcoin.”

Van de Poppe also mentioned the strength of the U.S. Dollar as an important factor in Bitcoin’s future move.

Inversely related to Bitcoin, the U.S. dollar Index (DXY) was not in a mood for correction. It began building upon twenty-year highs on May 11, after a brief dip.

U.S. dollar index (DXY), 1-hour candle chart Source: TradingView

LUNA craters within an inch of zero

Events at Blockchain protocol Terra were far more shocking than any BTC price movement.

Related: Terra will burn $1.4B UST, stake 240M LUNA and’stop the bleeding.

LUNA, the firm’s internal token, had lost 97% of it value. It then began to fall below a single U.S. penny on the day. This marked a crucial moment in its rapid disintegration.

As the turmoil surrounding TerraUSD (UST) continued, LUNA market appeared to lose all belief, and executives stopped the Terra blockchain from being implemented.

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 $LUNA inflation and a significantly reduced cost of attack.
— Terra (UST), Powered by LUNA [@terra_money] May 12, 2022

LUNA/USD managed to recover some of its losses, rising to $0.014 per token as of the writing.

LUNA/USD 1-minute candle chart (Binance). Source: TradingVIew

The largest stablecoin Tether (USDT) which had its dollar peg shaken in the chaos, moved closer to regaining that position, trading at $0.997

com. You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/bitcoin-could-target-32k-says-trader-as-luna-crashes-below-one-penny