Bitcoin dips 3.6% from weekly highs — What are the key BTC price levels to watch?

Bitcoin (BTC), which saw its weekly highs pass their first test, threatened a significant retracement overnight to March 23, as it was seen that Bitcoin (BTC), had already retraced.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

BTC misses “very bullish daily close”

Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD dropped from $43,337 at its peak to $41,779 at Bitstamp, before recovering.

The pair was trading at $42,300 as of the writing — still $1,000 below the highs.

Due to increased publicity about Blockchain protocol Terra’s $3 billion BTC buy in, Tuesday saw a lot of enthusiasm

Do Kwon, co-founder, stated that the majority of funds which were supposed to be used for Terra’s new TerraUSD stablecoin (UST), had not been yet purchased. This leaves room for potential BTC price drops.

However, markets cooled overnight and Bitcoin missed what would have been an “very bullish daily close” by about $200.

#Bitcoin would be bullish if it closed the Daily candle at $42.6k
Matthew Hyland (@MatthewHyland_), March 22, 2022

Matthew Hyland, an analyst, was positive that the tide was turning for Bitcoin. However, he also pointed to an ongoing breakout attempt by Bitcoin’s daily relative strengths index (RSI).

He noted that the downtrend had been present since November’s all time high.

BTC/USD annotated chart with RSI Source: Matthew Hyland/Twitter

Trader Credible Crypto highlighted an identical level of $42,500 as being important to flip.

He wrote that “42.5k was broken, now want this level established support if it is a truly breakout,” in a tweet update.

“Meaning that the move up should continue and we want to see some consolidation at this level in order for it to continue. Let’s see how we do over the next few days.

New balance sheet record at European Central Bank

The news that Thailand had banned crypto-based payments caused a sour mood in Asia. Meanwhile, in Europe, the balance sheet of the European Central Bank (ECB), rose to new records.

Similar: $43K BTC Flipping Support? According to derivative metrics, not anytime soon

Market commentator Holger Zschaepitz started to wonder if the sky is the limit for ECB asset purchases, now that they are at EUR8.7 trillion ($9.59 Trillion).

“The sky is the limit.” ECB Balance Sheet hits new ATH >EUR8.7tn. “ECB keeps buying bonds despite record high total assets,” he said Wednesday, alongside a Bloomberg Terminal chart.

“Eurozone inflation. The Eurozone’s inflation is now 82%. This compares to the Fed’s 37% and BoJ’s 16%.

ECB balance sheet chart. Source: Holger Zschaepitz/ Twitter

Cointelegraph reported that the United States Federal Reserve intends to stop asset purchases and reduce its balance sheet in the future.

https://cointelegraph.com/news/bitcoin-dips-3-6-from-weekly-highs-what-are-the-key-btc-price-levels-to-watch