This week, Bitcoin (BTC) is putting traders on the edge of their seats as support levels approach dangerously close to being broken.
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.”
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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