Bitcoin’s price has fallen significantly, but analysts warn against expecting a quick recovery according to on-chain data.
Investors believe that the worst of the Terra (LUNA) fall is passed, and there are early signs of “dust settling” in the crypto market. While the whole crypto market was affected, Bitcoin (BTC) has held up rather well.
Even though the May 12 price drop to $26,697 was the lowest since 2020, numerous criteria imply that the current levels could be a good place to start investing in Bitcoin.
The retest of Bitcoin’s 200-week exponential moving average (EMA) of around $26,990 was significant in this decline. According to cryptocurrency analysis firm Delphi Digital, this indicator has traditionally “acted as a crucial area for prior price bottoms.”
On May 12, not only Bitcoin had a bad day. The stablecoin market also had its highest volatility and divergence from the dollar peg since the beginning of the Terra saga, with Tether (USDT) having the largest variance among the major stablecoin projects.
The top four stablecoins by market cap have all returned to within $0.001 of their dollar peg, but the past two weeks’ events have shattered crypto investors’ faith in their capacity to hold.