Bitcoin (BTC), which is close to breaking, keeps traders on edge this week.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Targets below $40,000 are the targets of traders
Cointelegraph Markets Pro and TradingView data show that the lines in the sand below $40,000 barely stay intact after multiple retests.
As Bitcoin’s macro-fueled downtrend continues, the $40,000 mark has been working overtime. BTC/USD is now falling in line with tech stocks and has lost almost all its gains from March’s second half.
The $30,000-$40,000 corridor is now a short-term target. Bitcoin may revert to its Q1 behavior.
One of the support levels of interest, $39,600 from last month’s push up, is one bulls are barely able to defend, despite multiple crossings lower.
For now, $BTC levels are 45.5, 42 and 39.6
— April 11, 2022, The Wolf Of All Streets (@scottmelker).
Whale buying zones below that level could serve as a safety net. Whalemap observed this on April 12.
Crypto Ed, a popular trader, has set his sights on $38,600 as a temporary bounce area. This underscores the mixed consensus about how far Bitcoin can fall.
Cointelegraph reported that Arthur Hayes (ex-CEO of BitMEX derivatives platform BitMEX) expects the largest cryptocurrency trade to be $30,000 in June.
Analyst Kevin Svenson, however, looked at the 600-day simplemoving average (SMA), as a key support line. This is being retested in an event that could prove to be significant.
He noted that BTC had not closed a daily candle lower than 600d/SMA in the wake of the COVID-19 crash.
“The 600d/SMA was also the main support for this range from mid-January. 600d/SMA currently stands at $39,250.
Chart BTC/USD with 600-day SMA. Source: Kevin Svenson/Twitter
Terra continues to buy, but loses $96 Million
It is business as usual for the latest bigtime Bitcoin buyer.
Related: Bitcoin surges with stocks as US Inflation Hits its Highest Level Since 1981
According to data from its wallet, the Luna Foundation Guard (LFG), a nonprofit organization that is attached to Blockchain protocol Terra added another 2,500 BTC to its reserves on April 13.
Terra now has 42,400 BTC worth approximately $1.704 Billion at the time this article was written — 800 BTC less that Tesla’s corporate Treasury allocation.
These purchases have come at a cost. Terra has lost nearly $200 million on its stash and is now in the red with nearly $100 million due to the recent Bitcoin price drop.
It is the 18th-largest Bitcoin wallet. Do Kwon, Terra’s co-founder, confirmed that its contents will continue to grow as the firm seeks support for TerraUSD (UST), which is growing in supply.
LFG wallet data (screenshot). Source: BitInfoChartscom. You should do your research before making any investment or trading decision.