empty
30.05.2022 01:02 PM
Is everything so bad with Bitcoin?

May was one of the hardest months in the crypto industry, and several events contributed to this. The bearish trend is in full swing, what could be worse than this? That's right, the collapse of one of the largest projects in the industry. The collapse of the UST algorithmic stablecoin and the LUNA token was a real shock to the market. In a matter of days, one of the largest dollar stablecoins with a capitalization of more than $ 16 billion in vain depreciated, as did the LUNA token, which lost 99.99% of its value.

The cause and consequences of the collapse lie in several suspicious transactions, where experts suggest that this was a coordinated attack on the project tokens.To support the value of the UST stablecoin, the project began to sell off its reserves, which is about 80 thousand BTC, creating additional pressure on the market.As a result, it was not possible to save the tokens, and the Terra project decided to create a new Terra 2.0 network, partially paying off losses to investors with new tokens.

This story clearly showed the market how fragile the cryptocurrency is and where to be careful when investing in it.

Despite all the events, the head of MicroStrategy, Michael Saylor, said in an interview with Fox News: "Bitcoin remains an asset free from government and corporate interference, instilling confidence in this uncertain world."

According to the head of Saylor, financial markets are in a bearish trend, but this will not stop him and the company from further investing in BTC.

Let me remind you that MicroStrategy holds 129,218 BTC on its balance sheet - almost $ 4 billion.

Major players, including institutional investors, continue to be interested in digital assets. The CFTC report demonstrates the growth of long positions on Bitcoin futures on CME. This indicates that the market situation is gradually stabilizing after a prolonged decline.

At the same time, ARK Invest founder Cathie Wood said that the growing correlation between cryptocurrency and traditional assets indicates that the bear market will end soon.

"Cryptocurrency is a new asset class, it should not be similar to Nasdaq, but similar. Now they are strongly interconnected. You know that you are in a bear market and are close to its end when everything will start behaving the same way, and we are witnessing the capitulation of one market after another," she said.

This image is no longer relevant

What happens on the Bitcoin trading chart?

Bitcoin has been declining in value for 9 weeks in a row - this is one of the longest declines in the history of cryptocurrency. Panic prevailed in the market, thereby reinforcing the bearish trend. As a result, a clear flat of $ 28,000 / $ 31,500 appeared on the BTC chart, within the boundaries of which the quote closed.

At the moment, traders are analyzing the boundaries of the flat with special attention, since holding the price beyond the aisles of a particular frame will indicate the subsequent price move. This strategy is considered to be the most optimal and in the future can bring not a small profit.

At the same time, the 9-week decline indicates that short positions on BTC are overheated, which may provoke buyers to change direction. This movement will lead to a correction of the downward trend.

This image is no longer relevant

The index of emotions (aka fear and euphoria) of the crypto market moves within the critical level of 10 throughout May. This indicates a high degree of fear among traders. Such prolonged pessimism may eventually lead to a correction in the market.

This image is no longer relevant

Gven Podolsky,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Vladislav Tukhmenev
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Stablecoins increase their share in US government debt

Bitcoin is making efforts to grow, but each new rise is achieved with increasing difficulty. Nevertheless, this does not negate its longer-term bullish prospects. In the meantime, Bitwise has released

Jakub Novak 08:19 2025-08-29 UTC+2

Trading Recommendations for the Cryptocurrency Market on August 29

Bitcoin fell back below the $112,000 level, failing once again to consolidate above $113,000 properly. Ether also saw a significant correction during today's Asian trading, indicating its limited upside potential

Miroslaw Bawulski 07:37 2025-08-29 UTC+2

Despite the appearance of Bullish Divergence from the RSI, Ethereum's bias remains weak. Friday, August 29, 2025.

[Ethereum] – [Friday, August 29, 2025] With the RSI in the bearish neutral area and the EMA(50) and EMA (200) crossing a Death Cross, the cryptocurrency's bias is likely

Arief Makmur 07:34 2025-08-29 UTC+2

Litecoin will attempt to test its nearest support level today. Friday, August 29, 2025.

[Litecoin] – [Friday, August 29, 2025] Litecoin has the potential to weaken today because the two EMAs have crossed, even though The RSI remains at the Neutral Bullish level

Arief Makmur 07:34 2025-08-29 UTC+2

Bitcoin Forecast for August 29, 2025

Bitcoin, the leading cryptocurrency, continues to leave risk despite the growth of US stock indexes. This is likely because European and Asian stock indexes are in no hurry to share

Laurie Bailey 04:48 2025-08-29 UTC+2

Battle of opinions continues in cryptocurrency market

While Bitcoin and Ether are attempting to find their footing, with many expecting another upward move that would renew all-time highs, the cryptocurrency market remains a field of divergent views

Jakub Novak 08:03 2025-08-28 UTC+2

Trading Recommendations for the Cryptocurrency Market on August 28

Bitcoin returned yesterday to its favorite level of $112,000 and seems poised to continue rising—especially after large Asian purchases that boosted investor confidence. Ethereum also remains within a formation that

Miroslaw Bawulski 07:55 2025-08-28 UTC+2

Google develops its own blockchain

News emerged today that Google is developing its own blockchain, which will be used for payment systems. The project is currently in a closed testing phase. According to Rich Widmann

Jakub Novak 15:18 2025-08-27 UTC+2

Cryptocurrency market provides another important signal

Yesterday, Bitcoin stopped declining and recovered slightly to the $112,000 area. Recently, active selling during US trading sessions has clearly dampened optimism among traders counting on further market growth. Ether

Jakub Novak 09:59 2025-08-27 UTC+2

Trading Recommendations for the Cryptocurrency Market on August 27

Bitcoin has set a new mark above $112,000 and continues to trade above this level. Ethereum also increased significantly, but the short-term bear market remains stronger than yesterday's minor correction

Miroslaw Bawulski 09:06 2025-08-27 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.