Bitcoin Falls Below $29K as the Revival of Terra

Bitcoin Updates

The launch of the new LUNA mainnet comes at a time when problems with other well-known cryptocurrencies remain. Bitcoin (BTC) analysts faced another setback on May 28 as BTC/USD refused to offer up or down swings.

 

Data from Cointelegraph Markets Pro and TradingView showed the largest cryptocurrency sticking in a narrow short-term range into the weekend.

 

Previously forecast support levels to avoid a deeper correction managed to hold in the May 27 Wall Street trading session, but a bounce higher was similarly absent as commentators looked for fresh cues.

 

“Short resistance and long support until one of them breaks. Keep it simple in ranges as they are there to engineer liquidity for trend continuation or reversals,” popular trading account Crypto Tony summarized in part of a recent tweet.

 

Others focused on Bitcoin’s relative underperformance when compared with stocks, which finished up at the end of the week. The S&P 500 gained 2.47% on May 27, while the Nasdaq Composite Index was up 3.33%.

 

Unlike Bitcoin, equities markets were making the most of a continued downtrend in the strength of the U.S. dollar.

 

The U.S. dollar index (DXY) circled 101.6 on the day, down from highs of 105, which had marked a peak last seen in late 2002.

 

Analyst Matthew Hyland noted that the index’s reversal meant that it was now challenging its overall uptrend from the beginning of the year.

 

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Terra Blockchain to Relaunch

On altcoins, the revival of the controversial Blockchain protocol Terra was greeted by limp performance.

 

Terra co-founder Do Kwon confirmed the launch of the new mainnet for in-house token Terra (LUNA) on the day.

 

At the same time, concern was mounting over other major altcoin projects, notably Celsius (CEL), which had managed to drop from $0.80 to around $0.50 in under a week.

 

Hex (HEX), a project that has raised doubts throughout its existence, suffered a similar fate, falling from slightly above $0.11 a week ago to a low of below $0.05.

 

Nevertheless, the top 10 cryptocurrencies by market cap replicated Bitcoin’s low-volatility behavior in the 24 hours leading up to this writing, with only Dogcoin ( DOGE ) showing a significant move, this time up $0.08.