Bitcoin price stuck below $29K as Terra LUNA comes back from the dead

Bitcoin (BTC), analysts were faced with another day of frustration May 28, when BTC/USD refused volatility up or down.

BTC/USD 1-day candle chart (Bitstamp). Source: TradingView

“Not the decoupling that we desired”

TradingView and Cointelegraph Markets Pro data showed that the largest cryptocurrency remained in a narrow range through the weekend.

Forecast support levels that were previously used to prevent a deeper correction held in the Wall Street trading session on May 27, but an increase was not seen as commentators searched for new cues.

“Short resistance, long support until one breaks. “Keep it simple in ranges because they are there to engineer liquidity trend continuation or reversals,” Crypto Tony, popular trading account, said in a part of a recent Tweet.

Others focused on Bitcoin’s relative underperformance compared to stocks, which ended up at the close of the week. The S&P 500 gained 2.47 percent on May 27th, while the Nasdaq Composite Index rose 3.33%.

It looks like this time may be different. This is also not the decoupling we desired. #Bitcoin $BTC
Jan Wustenfeld (@JanWues), May 27, 2022

Contrary to Bitcoin, the equities markets took advantage of a continuing downtrend in strength of the U.S. Dollar.

The U.S. dollar Index (DXY), which was at 101.6, fell from its highs of 105 on the previous day. This peak was last seen in 2002.

Matthew Hyland, analyst, noted that the index was in a reverse trend and that it was now challenging the overall upward trend from the start of the year.

US Dollar (DXY) Weekly RSI heading toward a crucial test of the trend line that started at the start of the year:
Matthew Hyland (@MatthewHyland_), May 28, 2022

Do Kwon confirms LUNA rebirth

Altcoins’ revival of Terra, a controversial Blockchain protocol, was met with mediocre performance.

Related: Exchanges support Terra 2.0 revival plan via airdrops and listing, buyback, and burning

Do Kwon, Terra’s co-founder, confirmed that the new mainnet was launched for the in-house token LUNA today.

To view your $LUNA (or $LUNA2 as some exchanges call them) token balances, you only need to log into station and refresh the page For new users coming in from IBC et all, create a station wallet with the same ledger and station should walk you through the remaining steps
Do Kwon (@stablekwon), May 28, 2022

Concern was growing over the performance of other altcoins, such as Celsius (CEL), which dropped from $0.80 to $0.50 in a matter of days.

CEL/USD 1-hour candle graph (FTX). Source: TradingView

Hex (HEX), a project that had been the subject of suspicion since its inception, experienced a similar fate. It dropped from just over $0.11 a few weeks ago to below $0.05.

The market capitalization of the top ten cryptocurrency markets was still high. Bitcoin’s low volatility behavior was copied by all cryptocurrencies. Only Dogecoin (DOGE), however, saw any notable moves. This time, $0.08 has been reclaimed.

Chart of 1-hour candle charts for DOGE/USD (Binance). Source: TradingViewcom. You should do your research before making any investment or trading decision.