Bitcoin price levels to watch as Terra buys 2.5K BTC to nearly match Tesla

Must Read

Harmony’s $100M Hack Was Due to a Compromised Multi-Sig Scheme, Says Analyst

Harmony’s Multi-Sig Exploited Polygon’s CSO Says, Harmony Protocol’s Founder Found Evidence That ‘Private Keys Were Compromised’

Uniswap Set To Add NFTs To Its Product Lineup With Latest Acquisition

On Tuesday, a popular crypto start-up and founders of a leading decentralized exchange of the name Uniswap...

Yuga Labs vs. Ryder Ripps: Decoding the impact of the lawsuit on the performance of ‘Apes’

Yuga Labs is the limelight again. However, this time around the NFT giant announced that it has...

Bitcoin (BTC) is keeping traders on the edge of their seats this week as support levels come close to breaking.

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

Traders line up targets below $40,000

Data from Cointelegraph Markets Pro and TradingView shows that lines in the sand below $40,000 barely remain intact after multiple retests.

The $40,000 mark has been working overtime in recent days as Bitcoin’s macro-fueled downtrend continues to play out. Falling in line with tech stocks, BTC/USD has erased almost all of its gains from the second half of March.

Now, the $30,000-$40,000 corridor has appeared as a short-term target once again and may see Bitcoin stage a replay of its behavior from Q1 this year.

Support levels of interest include one from last month’s push higher, $39,600, which bulls are just about managing to defend despite several crossings lower.

Below that, whale buying zones could act as a safety net, on-chain monitoring resource Whalemap noted on April 12.

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.

As Cointelegraph previously reported, 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.”

BTC/USD chart with 600-day SMA. Source: Kevin Svenson/ Twitter

Terra keeps buying but loses $96 million

For the newest bigtime Bitcoin buyer on the block, however, it is business as usual.

Data from its wallet confirms that the Luna Foundation Guard (LFG), the nonprofit organization attached to Blockchain protocol Terra, added another 2,500 BTC, or $100.4 million, to its reserves on April 13.

This means that Terra now owns 42,400 BTC, worth around $1.704 billion at the time of writing — just 800 BTC less than Tesla’s corporate treasury allocation.

The purchases have so far come at a price. From being nearly $200 million in profit on its stash, Terra is now nearly $100 million in the red, thanks to the latest Bitcoin price dip.

Its wallet is the 18th largest on the Bitcoin network, and as Terra co-founder Do Kwon confirmed, its contents are set to grow “in perpetuity” as the firm seeks to back the expanding supply of its TerraUSD (UST) stablecoin.

LFG wallet data (screenshot). Source: BitInfoCharts

Source: https://cointelegraph.com

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Harmony’s $100M Hack Was Due to a Compromised Multi-Sig Scheme, Says Analyst

Harmony’s Multi-Sig Exploited Polygon’s CSO Says, Harmony Protocol’s Founder Found Evidence That ‘Private Keys Were Compromised’

Uniswap Set To Add NFTs To Its Product Lineup With Latest Acquisition

On Tuesday, a popular crypto start-up and founders of a leading decentralized exchange of the name Uniswap announced the acquisition of Genie,...

Yuga Labs vs. Ryder Ripps: Decoding the impact of the lawsuit on the performance of ‘Apes’

Yuga Labs is the limelight again. However, this time around the NFT giant announced that it has filed a lawsuit against old...

Anonymous vows to bring Do Kwon’s ‘crimes’ to light

Hacktivist group Anonymous has pledged to “make sure” Terra co-founder Do Kwon is “brought to justice as soon as possible” in regard...

SEC requests comments on the guidelines for ICO portals

To avoid conflicts of interest and clarify the rules of outsourcing, the Securities and Exchange Commission (SEC) asks the public for feedback...
- Advertisement -

More Articles Like This