Bitcoin price fell out of its long-term trading range as ongoing sell pressure reduced markets to 2020 levels
Bitcoin price fell out of a long-term trading range on May 12 as selling pressure continued to descend. The situation is also not so positive as in 2020.
Tether wobbles as UST remain below $0.6; Bitcoin price is severely affected
The BTC/USD trading pair is being closely watched as they break out of a range that has been trading since early 2021. At the time of writing, the pair was hovering around $26,700 on Bitstamp; hitting its lowest level since December 28, 2020. This decline comes from the fallout from Terra’s stablecoin crisis, with rumors that even professional hedge funds are experiencing solvency problems. solvency due to losses from LUNA and UST.
BTC/USD 4-hour chart | Source: TradingView
At press time, LUNA is trading at around $0.21. Meanwhile, in early May, the LUNA/USD pair traded at $80. The UST, currently a hotbed of Terra executives, is committed to restoring the US dollar exchange rate. However, it currently sits at $0.60, still far from $1 but more than double the record low for the week.
However, tensions are increasingly evident in the cryptocurrency market. Because the largest stablecoin itself, Tether (USDT), has begun to show worrying signs that it will most likely follow the collapse of the UST…
At the time of writing, the USDT/USD pair is trading below $0.99 on major exchanges. However, given this situation, analysts still believe that the current prices are still a potential investment opportunity. The extent of investors’ losses is also reflected in the “liquidation phase” of the market. Coinglass shows that Bitcoin and several major altcoins have reached their largest liquidation threshold of $1.22 billion in just 24 hours to press time.
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