Bitcoin is down 3.6 percent from its weekly highs — What are the major Bitcoin price levels to keep an eye on?
Bitcoin price action is hovering just below short-term support targets after falling from its highest levels in a week.
BTC fails to achieve a “extremely bullish” daily closing.
According to Cointelegraph Markets Pro and TradingView data, BTC/USD fell from a high of $43,337 to a low of $41,779 on Bitstamp before rebounding.
At the time of writing, the pair was trading at $42,300, still $1,000 behind its all-time high.
On Tuesday, excitement was palpable, courtesy to increased coverage of Blockchain technology Terra’s purported $3 billion BTC buy-in.
According to co-founder Do Kwon, the bulk of the money intended to underpin Terra’s new TerraUSD (UST) stablecoin have yet to be acquired, allowing opportunity for more BTC price squeezes.
Nonetheless, the atmosphere on markets cooled overnight, with Bitcoin falling short of what would have been a “very positive” daily closing by approximately $200.
Analyst Matthew Hyland, on the other hand, was sure that the “tide was turning” for Bitcoin, pointing to a continuous breakthrough attempt for Bitcoin’s daily relative strength index, among other things (RSI).
He pointed out that the decline has been in place since before November’s all-time high.
Meanwhile, trader Credible Crypto identified a similar mark around $42,500 as critical to flip.
“42.5k has been broken, now want to see this level established as support if this is a legitimate breakout,” he tweeted on the day.
“That is, the advance up should hold and there should be some consolidation above this level for the increase to continue. Let’s see what we can come up with in the next day or two.”
The European Central Bank has set a new balance-sheet record.
On the macro level, news that Thailand had chosen to prohibit the use of cryptocurrency for payment created a negative mood in Asia, while the European Central Bank’s (ECB) balance sheet surged to record highs in Europe.
With the ECB’s asset purchases already exceeding €8.7 trillion ($9.59 trillion), market observer Holger Zschaepitz started to wonder whether “the sky’s the limit” for the ECB.
“Is the sky the only limit? The ECB Balance Sheet has reached a new high of more over €8.7 trillion. Total assets increased by another €13 billion as the ECB continues to purchase bonds despite record-high yields “He summarized Wednesday beside a Bloomberg Terminal display.
“Inflation in the Eurozone. The balance sheet currently accounts for 82 percent of Eurozone GDP, compared to the Fed’s 37 percent “and 136 percent for BoJ.”