Nothing keeps Bitcoin bull down over a long period. After mammoth volatility that saw bears tear down BTC price below USD25,000 last week, the price is back to above USD 30,000.
Bitcoin Forms New Trend, Volatility to Continue
After almost hitting the USD 24,000 mark last week, it is becoming apparent that Bitcoin is now ready for a major upswing. By the close of last week, Bitcoin had created an uptrend as its price moved up to near USD 31,000. Data from TradingView and Cointelegraph Market Pro indicates that BTC/USD pair still remains oversold.
On May 11th and 12th, the balances on exchanges declined to slightly over 24,335 BTC, according to data from CryptoQuant, an on-chain analytics platform that covers 21 major exchanges. Outflows were higher, but the inflows were equally intense.
Outflows were higher, close to 168,000 over the same period, but inflows were driven by panic over Terra (LUNA) and TerraUSD (UST) tokens, as the latter lost its peg. As the price of LUNA almost hit zero, Bitcoin gained strength, with investors appearing to weather the shock of the week. Many are those who had targeted to start buying if Bitcoin continued with a downtrend.
But the pioneer cryptocurrency on the market had other plans. MicroStrategy, a company with the largest BTC treasury, had indicated it would start buying into any significant weaknesses towards USD 20,000.
Market Volatility Expected to Continue
Bitcoin opened this week on a positive trend, gaining 4.66% on Monday, but reversed by 2% on Tuesday morning. On Wednesday morning, Bitcoin price slid below the USD30k mark, indicating that the market is still volatile. The overall global crypto market cap was trading at USD1.29 trillion.
Analysts are indicating that we might be in for more volatility because of macroeconomic challenges and the emerging complexities of stablecoins. Sea Farell, the Vice president of digital assets strategy at FindStrat, said that a considerable risk of panic is resulting from the macro-environment and fuelled by LUNA-type of threat. Such risks can easily see ETH and BTC lose their support.
“There could be significant negative repercussions for cryptocurrencies and digital finance if investors lose confidence in stablecoins,” Farell adde