Bitcoin (BTC) rose to an intraday high of $30,016 on May 13 as buyers deemed it oversold. Bitcoin reached its most oversold levels since March 2020, as reflected in the relative strength index (RSI) on the weekly chart. Still, upside gains seem to be limited, as the lead cryptocurrency might face a significant barrier slightly above $32,500 and then near the $38,000 mark.
The recent selloff brought BTC closer to the MA 200 at $21,840 on its weekly chart which acts as lower support. Immediate support is between $27,000 and $30,000, which could stabilize price action over the next few days. However, indicators appeared mixed on Bitcoin’s incoming price action.
However, momentum indications on all timeframes remain negative, indicating a period of low or negative returns in the coming months. Short-term countertrend signals, on the other hand, came on the charts, indicating a price bounce.
On Friday, most cryptocurrencies rose as gloomy sentiment faded. Ethereum rebounded 10% to reach intraday highs of $2145. Despite the rebound, Ethereum might be set to end its sixth consecutive week of losses. Alternative cryptocurrencies (altcoins) outperformed bitcoin generally, which signifies an increased appetite for risk among traders.
Cardano (ADA), Shiba Inu (SHIB), Polkadot (DOT), and STEPN (GMT) rallied by more than 20% over the past 24 hours. Apecoin (APE), Decentraland (MANA), and Kadena (KDA) are up by more than 30%. For now, cryptos might be said to be experiencing a relief rally, which could last for a few more days.
However, cryptos may encounter increased volatility in the near term owing to economic concerns and their high correlation with the stock markets. At press time, Bitcoin was trading at $30,016 while Ethereum was seen at $2066.
Do Kwon Wants To “Restart “ Terra
Following a nine-hour halt, the Terra blockchain resumed activity on Friday. According to coinmarketcap, the LUNA token was trading at $0.000077.
Do Kwon, the founder of Terraform Labs, suggested a “Terra Ecosystem Revival Plan” in a forum post, which amounts to a restart of the whole Terra blockchain, with network ownership dispersed fully to UST and LUNA holders via 1 billion new tokens. The CEO also admitted to the Terra ecosystem’s total collapse.
Terra’s UST stablecoin, which was meant to be fixed to its dollar peg “death spiraled” to $0.05, wiping out billions of dollars in value.