Bitcoin Price Levels To Watch As Terra Buys 2.5K BTC To Nearly Match Tesla
This week, Bitcoin (BTC) is putting traders on the edge of their seats as support levels approach dangerously close to being broken.
Traders are lining up targets Bitcoin below $40,000 as well
Lines in the sand below $40,000 barely hold intact after several retests, according to data from TradingView.
As Bitcoin’s macro-fueled slump continues, the $40,000 level has been working overtime in recent days. BTC/USD has lost virtually all of its gains from the second half of March, following in the footsteps of tech stocks.
Now, the $30,000-$40,000 range has resurfaced as a short-term target, and Bitcoin could repeat its performance from the first quarter of this year.
One from last month’s drive higher, $39,600, is a level of interest that bulls are just about managing to defend despite repeated crossings below.
Below that, whale buying zones could act as a safety net, on-chain monitoring resource Whalemap noted Tuesday.
Popular trader Crypto Ed meanwhile is eyeing $38,600 as a short-term bounce area, underscoring the mixed consensus over just how far Bitcoin could fall.
Arthur Hayes, ex-CEO of derivatives platform BitMEX, expects the largest cryptocurrency to trade at $30,000 in June.
On longer timeframes, analyst Kevin Svenson meanwhile eyed the 600-day simple moving average (SMA) as a key support line now being retested in what could be a significant event.
“BTC has not closed a daily candle below the 600d/SMA since the COVID-19 crash,” he noted.
“The 600d/SMA has also been the main support for this range since mid-January. $39,250 is where 600d/SMA is at the moment.”
Terra keeps buying but loses $96 million
For the newest bigtime Bitcoin buyer on the block, however, it is business as usual.
The Luna Foundation Guard (LFG), a nonprofit organization linked to the Blockchain system Terra, added another 2,500 BTC ($100.4 million) to its holdings on Wednesday, according to data from its wallet.
Terra now has 42,400 BTC ($1.704 billion) in its possession, just 800 BTC less than Tesla’s corporate treasury allocation.
So far, the purchases have been costly. Terra’s stockpile, which was approximately $200 million in profit before the recent Bitcoin price drop, is now nearly $100 million in the red.
Terra’s wallet is the 18th largest on the Bitcoin network, and its contents are planned to grow “in perpetuity,” as Terra co-founder Do Kwon revealed, as the firm wants to support the growing supply of its TerraUSD (UST) stablecoin.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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