Things are looking precarious for Bitcoin this week, with concrete rebound predictions absent for the short term.
Bitcoin (BTC) is keeping traders on the edge of their seat 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.
$BTC levels for now are still 45.5, 42, 39.6
— The Wolf Of All Streets (@scottmelker) April 11, 2022
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.
As Cointelegraph 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.
Related: Bitcoin spikes with stocks as US inflation hits highest since 1981
Data from its wallet confirms that the Luna Foundation Guard (LFG), the nonprofit organization attached to Blockchain protocol Terra, added another 2,500 BTC ($100.4 million) to its reserves Wednesday.
This means that Terra now owns 42,400 BTC ($1.704 billion) — 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
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