Inflation rhymes with capitulation – This week is going to be a long one for bulls. Bitcoin (BTC) loses $30,000, when its price should have theoretically recorded strong gains today, May 11, 2022.
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Bitcoin Below $30,000: Shaken BTC Markets Despite Good Inflation
bitcoin price falls three times under $30,000 today. It first drops to around $29,350 before recording a strong rebound which quickly brings it back to near $31,800.
It then suffered a second drop below $30,000, dropping to around $29,560. The rebound takes bitcoin back above $30,000, before losing that level for a third time. Bitcoin is trading at $29,392 at the time of writing. He is currently recording a daily loss of 7.17%.
How to interpret this back and forth across $30,000, with a possibility of closing below this level? These tremors come at a time when the publication of this macro indicator should nevertheless benefit bitcoin prices.
The trader Michaël van de Poppe has evoked inflation in the United States which reached 8.3% “. This figure would have caused “an immediate shock reaction because it is higher than expected”. Michaël van de Poppe notably insisted on the fact that “inflation is reaching a peak and stabilizing”
The trader did not fail to point out the contrast between theory that “this should lead to short-term bullish momentum in risky assets, including Bitcoin.” And reality which is quite different: today was the capitulation “.
These falls below $30,000 show that BTC markets and crypto markets in general remain fragile following the shock wave caused by the loss of the peg of the UST stablecoin of the Terra project (LUNA), to the US dollar.
A few hours before the publication of the Consumer Price Index in the United States, the founder of Terra, Do Kwon, published a series of tweets in an attempt to reassure investors. However, were his words heard given the feverishness of the markets?
The RSI of all hopes for the moment leaves room for a despairing fall of bitcoin below $30,000. Floor price, where are you?
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