Bitcoin (BTC) starts a new week below $ 30,000 as the struggle to save the market from fresh lows continues.
After reaching the highest levels since the collapse of Terra LUNA last week, the largest cryptocurrency still continues to recover $ 30,000 in support.
What could be in store this week? The potential for major economic turmoil, particularly by the US Federal Reserve, is changing this week ahead of the World Economic Forum.
At the same time, the internal pressure on the cryptocurrency market continues as the consequences of the collapse of LUNA continue to play out.
Cointelegraph examines five potential BTC price movers for the next few days.
Record weekly hills greets bulls
Commerce caution is palpable this week after rising market expectations over the past seven days.
When the Blockchain protocols of Terra’s LUNA and TerraUSD (UST) tokens crashed, their decline in all cryptocurrencies and Bitcoin was, of course, no exception.
After dipping to near real value just below $ 24,000, BTC / USD staged some of the V-shaped recovery to jump past $ 31,000 in the next few days. That strength, however, seems limited, as $ 30,000 turns out to be a stubborn point to win for good.
While the picture certainly looks more secure than some altcoins, traders stay away from any thoroughly high prices.
A key story that is gaining attention is about the current levels that form the basis for a jump in relief that will eventually end not only with rejection but an attack on lower lows than last week.
This is for me the best example of #Bitcoin due to rejection and 3 wave confirmation. Either we descend into new lows from here, or we end the C-wave flat and then pump again
If you are a scalper, this will be heaven for you in the next few days image.twitter.com/LNvVbpXPG6
– Crypto Tony (@CryptoTony__) May 16, 2022
“Just as we bullies have been struggling with developments over the past few weeks, I think the bears are about to deny or reject further incidents,” the popular Twitter account IncomeSharks said in part from two recent posts on the BTC / USD outlook.
That added that those who are only now revolving around being bearish, however, will “get too caught up in their bias”.
Companion trader Crypto Tony meanwhile said that the pair needs to recover $ 31,000, not just $ 30,000, to continue higher thanks to the former marking the week’s high.
Zoom out the picture seems hardly less dangerous than in an hour or daily time frame.
Weekly BTC / USD dug, despite modest recovery, closed seventh consecutive red candle on May 15 – for the first time in history that such an event has taken place. The week ended at about $ 31,300, data from Cointelegraph Markets Pro and TradingView show.
Wondering if long-term subsidies could last much longer – even beyond 2022 – Twitter account Nunya Bizniz noted that as a result of halving subsidies, Bitcoin has historically been well below its all-time high.
As such, it would fit a historic precedent for BTC / USD to trade well below $ 69,000 at a time when its next halving will be in two years.
At halftime, the price has been well below NOTE.
Different this time? image.twitter.com/gQlQCEbW4w
– Nunya Bizniz (@Pladizow) May 16, 2022
DXY just does not stop as Davos looms over
Last week, the central bank struggled with inflation, interest rate hikes and geographical disputes, all aspects of which, ironically, were almost immediately overshadowed by Terra.
However, such announcements are not expected this week, but the underlying tensions have not disappeared.
As such, the war between Russia and Ukraine, inflation and measures taken to reduce it are still the subject of central banks around the world. This will no doubt be a major topic of discussion at the World Economic Forum, where the 2022 event begins on 22 May.
The seminar, and the possibility of Bitcoin-related audio clips from participants, both positive and negative, will follow another meeting this week in El Salvador, where representatives from 44 countries will discuss Bitcoin.
“Tomorrow, 32 central banks and 12 financial authorities (44 countries) will meet in El Salvador to discuss financial integration, the digital economy, non-banking banking, Bitcoin exposure and its benefits in our country,” said President Nayib Bukele. confirmed on May 15th.
At the same time, the US dollar refuses to quit when it comes to strength against major corporate currencies.
The US Dollar Index (DXY), despite local compression levels, remains in a strong upswing that has denied the bears that the peak is macroeconomic for months.
DXY went 105 on May 9, the highest since December 9, 2002.
“At the same time, the euro is testing its lowest 5-year against the US dollar,” tweeted an expert from Blockchain Backer as part of thread in the macroeconomic environment as it relates to cryptography.
“The euro is a large part of the US Dollar Index (DXY) and has traditionally been the opposite of the DXY.
DXY is also pushing the stock and cryptocurrency markets, but the latter nonetheless demonstrates a correction system already seen in bear markets, Blockchain Backer argues.
“So there is a lot going on here. Dow Jones below last week’s support break. DXY for a maximum of 20 years. EURUSD on support. Altcoin Market and Ethereum with a similar correction structure as before. But no coins fly like a reversal, “the thread continued.
Tjóður crawls back after 5% disconnection
Regardless of the upcoming events, it’s the ghost of last week’s disaster that haunts the market on Monday.
The aftermath of the collapse of Terra’s UST and LUNA symbols is not yet fully understood as data continues to flow in on both the failure and the company’s plans to reduce the fall.
Some facts seem clear but have not been officially confirmed, such as the mass sale of the BTC reserve Luna Foundation Guard (LFG). Others are still rumors, especially the mass bankruptcies of institutions with LUNA and ICT risk.
What happens next is just as unclear, and as Blockchain Backer points out, no one knows for sure if the sale is over.
“Last week there was a devastating blow to LUNA and UST. We do not know the complications of this and who has suffered additional damage from it yet, “says the report added together.
“Were there other treasuries for this? Has LFG sold all of its Bitcoin reserves, or is there more left? We do not know. “
However, the focus is not only on UST, but on the industry’s largest stablecoin in terms of market value. Tether (USDT) saw its dollar appreciation last week and although there are no signs of repeated UST performance, 1 USDT is still not quite equal to 1 USD as of May 16th.
“When things started to hit the TerraUSD (UST) fan, it started with a small drop and then got out of hand,” Blockchain Backer added.
As the Cointelegraph reported, Tether’s authors have defended USDT’s ability to escape the storm, thanks to its structure, which is inherently different from UST and algorithmic stablecoins in general.
“In the coming weeks, we will begin to know the full extent of the damage when news of significant damage and collapse comes to light,” Crypto trading firm QCP Capital told Telegram subscribers in its latest update on May 13.
“Despite the bloodbath, however, we are happy with the resilience we have seen in a special part of cryptography.
LUNA continues to see uncontrolled fluctuations, making it anything but impossible to map any time frame, and as of this writing on May 16, trading at 0.00023 on Bitfinex.
Expert: Companies step up to buy
Is anyone buying Bitcoin? Data say that the answer to this is definitely “yes” from certain market segments.
Í analysis Released on May 16, Ki Young Ju, CEO of CryptoQuant’s research platform, noted the interest of institutional investors as a key Bitcoin phenomenon between $ 25,000 and $ 30,000.
Ki explained that while the LUNA failure had forced bids down to $ 25,000, the total bids had remained unchanged for one year. Not only that, but these deals could now be reducing Terra-related sales.
“If you look at the heat map of the BTC-USD order book for Coinbase, there are rather thick bid walls since the latest bear market in May 2021,” he said.
“I think institutions tried to stack $ BTC from $ 30k but had to rebuild the bid walls at $ 25k due to an unexpected sale of LFG.
The attached picture shows how events played out on Coinbase, the stock exchange that Ki says received most of the Terra-related funds for sale.
As the Cointelegraph reported, the world’s first Bitcoin (ETF) mutual fund added an in-day record amount of BTC to its assets under management last week when two Australian ETFs opened.
The growth of the Bitcoin address is contrary to belief
It’s probably not surprising that cryptocurrency market sentiment remains on the floor.
Related: $ 1.9T Cryptocurrency Drying to Ship Stocks, Bonds – Stablecoin Tether in Focus
Reflecting price stability nerves, the Crypto Fear & Greed Index is firmly in “extreme fear” territory this week at 14/100.
After reaching a historic low last week, the recovery has been noticeably smaller than the original fall, which took the index from 27/100 to 10/100 in five days.
Behind the scenes, though, it may not be as black as it seems.
Data from the chain watchdog company Santiment last week shows that amid the chaos, individual Bitcoin addresses continue to grow.
“The silver lining with this -33% decrease over the past 3 weeks is that the address activity of $ BTC has remained stable,” it wrote in a Twitter comment.
“The difference between addresses and prices is a maximum of 16 months.
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should conduct your own research when making a decision.
Mail Bonus – #7week #losing #streak #history #Bitcoin #week