Flagship cryptocurrency asset, Bitcoin, is bullish at the start of the London session today, trading above the $30,000 zone, as the lost bulls of the market have finally been found. Bitcoin is up over 10% as of the time of this writing after falling to trade as low as $26,350.49, as a result of the LUNA capitulation.
The cryptocurrency market capitalization is up 11% as of the time of this writing, to currently stand at $1.3 trillion. Yesterday, the market capitalization nearly fell below $1 trillion, to trade as low as $1.15 trillion, a price point not traded since June 2021.
With Bitcoin rallying, so it the altcoin as they are all posting gains of 10% and above with some tokens like BNB, ADA, DOT posting over 30% gains in the last 24 hours. The current rally is attributable to increased demand from bullish as investors are mopping up the lower price ranges seen in the market.
What you should know
- Bitcoin showed no taste for fresh bearishness as record on-chain volume combined with coins leaving exchanges have created a fresh bullish rally in the market.
- On May 11 and May 12 alone, exchange balances declined by over 24,335 BTC worth $740 million, according to data from on-chain analytics platform CryptoQuant covering 21 major platforms.
- Outflows (crypto leaving exchanges) were much higher at nearly 168,000 BTC worth $5.1 billion over the same period, but inflows from those seeking to sell were equally intense as panic set in over Terra’s LUNA and TerraUSD (UST) tokens, as well as largest stablecoin Tether (USDT).
- As LUNA went to zero and its blockchain was halted, Bitcoin nonetheless strengthened as the immediate impact of the instability waned.
- TradingView author CryptoBullet reacted to Bitcoin’s rally as part of Twitter comments stating, “This is a hell of a reversal candle.” Bitcoin’s relative strength index (RSI) referred to by CryptoBullet measured 31 at the time of writing, still in oversold territory and its lowest since January.
As the dust settled on Terra, LUNA and UST, however, not everyone was convinced that the worst was over. Among them was the official Bitcoin Twitter account, which like several others noted that even the week’s lows did not represent a “classic” maximum drawdown versus all-time highs. Bitcoin usually draws down 80% after hitting an all-time high
The account tweeted, “The $BTC all-time high is $68,990. An 80% draw-down is $13,798. $27k is about halfway there.”
MicroStrategy, the company with the largest Bitcoin treasury, hinted that it would buy into any significant weakness toward $20,000 in an attempt to support the market.