Bitcoin (BTC) bounced back from ten-month lows on May 11 as the start of Wall Street trading gave bulls some relief.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
One day, $860 million more crypto liquidations
April’s consumer price index (CPI) print has sent the pair into a fresh tailspin, with $30,000 giving way to levels not seen since July 2021.
As turmoil over Terra, its LUNA and TerraUSD (UST) tokens and co-founder Do Kwon continued, the mood remained firmly wary. The Crypto Fear & Greed Index measured sentiment with a normalized score of 10/100 on May 10, one of the lowest ever recorded.
Crypto Fear & Greed Index (screenshot). Source: Alternative.me
“Could go to $28,000 more or less,” popular trader Crypto Ed forecast in his latest YouTube and Twitter update released before the CPI news, adding that he considered the downside “not finished 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
– Rekt Capital (@rektcapital) May 11, 2022
The 24 hours to the time of writing meanwhile saw another $860 million in cross-crypto liquidations, data from on-chain monitoring resource Coinglass confirmed.
Crypto liquidations chart. Source: Coinglass
Bitcoin bad? It could be worse…
Away from Terra, attention also focused on Bitcoin hard forks on the day.
Bitcoin Cash (BCH), which hit a peak of 0.1829 BTC in December 2017, had the dubious honor of hitting new all-time lows in BTC terms on May 11.
BCH/BTC 1-month candle chart (Binance). Source: TradingView
Now at just 0.0068 BTC, BCH drew ridicule in line with its spin-off Bitcoin SV (BSV), which likewise put in a new floor against BTC.
BSV/BTC 1-week candle chart (Bitfinex). Source: TradingView
“Bitcoin will remind you why it is king. ALT / BTC valuations are in for a reckoning,” commentator Benjamin Cowen wrote.
“The story has been told in the past and it’s the same story again. See you at 60% BTC dominance.”
Bitcoin’s market dominance stood at 43.7% at the time of writing, up around 4% from 2022 lows set in January, according to data from CoinMarketCap.
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