Bitcoin (BTC) broke out of its long – term trading range on May 12 as continued sales pressure reduced markets to 2020 levels.
Tether moves as UST stays under $ 0.60
Data from Cointelegraph Markets Pro and TradingView showed that the BTC / USD pair has been breaking out of the range in which it has been trading since the beginning of 2021.
At the time of writing, they both had around $ 26,700 on Bitstamp, the lowest level since December 28, 2020.
The downward trend came as a fallout from the fall coin stable Terra continued to ricochet around crypto and beyond, with rumors claiming that even traditional funds were suffering from solvency issues due to losses on LUNA and UST.
“People are still processing this but this is Lehman’s moment for crypto”
Hear about many funds that may have been insolvent since the Luna crisis
– Frank Chaparro (@fintechfrank) May 12, 2022
“People have not received it yet, but it’s time for Lehman to make cryptocurrency.” We hear about many funds that may have been insolvent due to Luna’s collapse. – Frank Chaparro (@fintechfrank) May 12, 2022
LUNA, the Tether signal, was almost capitalized in value terms at the time of this writing, trading at around $ 0.22. At the beginning of May, the LUNA / USD pair was trading at $ 80.
The UST, which Terra executives currently focus on restoring its pins to the US dollar, was about $ 0.60, still far from $ 1, but more than double the weekly high.
However, tensions were becoming more visible in the cryptocurrency market as the largest stablecoin, Tether (USDT), began to show itself signs of worry that it was copying the fall of the UST.
At the time of writing, the USDT / USD pair was worth less than $ 0.99 on major exchanges.
Commenting on the stability of the system, Tether Chief Technology Officer Paolo Ardoino said USDT withdrawals were in full swing.
“More than 300 Million redeemed in the last 24 hours without a drop of sweat”, can we read as part of tweet.
Data from blockchain analytics firm CryptoQuant added that record stable coin outflows are seen on large exchanges.
$ 1.22 billion was liquidated in 24 hours
Regarding the loss of the macro range baseline created in January 2021, analysts were always ready to consider current levels as a potential opportunity.
Read also: Activate Ethereum Whales as High Level Hit Transactions Since January
“Whatever you lose in a deteriorating macro, you get a multiple of it back in a macro trend. All you have to do is pay attention to the markets when they are ultra bearish, ”he said supported popular trader Rekt Capital.
A previous tweet, from May 11, highlighted the macro range.
Yew #BTC lose this green area for support…
That is the confirmation that $ BTC it will enter a multi-month downtrend#Crypto #Bitcoin pic.twitter.com/ReIa6D4yw3
– Rekt Capital (@rektcapital) May 11, 2022
If #BTC loses this green area in support… It will be a confirmation that $ BTC will enter a multi – month downturn #Crypto #Bitcoin pic.twitter.com/ReIa6D4yw3 – Rekt Capital (@rektcapital) May 11, 2022
The amount of losses was reflected in market sales. Data from the blockchain monitoring resource Coinglass, for bitcoin and altcoins combined, show that these liquidations exceeded $ 1.2 billion in the 24 hours prior to this writing.
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investments and trading operations involve risk. You should do your own research before making a decision.
Related posts:
Why did the UST drop stablecoin and what is the future of Terra ecosystem? 
LUNA breaks under $ 5, bitcoin hits $ 138,000 in UST 
Bitcoin price forecast: BTC / USD falling cheap – crash to $ 12,500 possible? 
Bitcoin’s price target is now $ 29,000, trader warns after Terra confuses $ 285 million attack
