Introduction
Terra raised about $1 billion via a private sale of a token known as LUNA from 3AC and Jump Crypto. With this fund, he was able to purchase additional bitcoin worth $100 million.
Crypto Brokers must have noticed that the trading volume on the asset must have increased recently.
BTCUSD: Technical Analysis
Monthly Chart
Monthly Resistance Levels: 69000, 59117, 48238.
Monthly Support Levels: 39600, 28900
The bullish momentum was lost at the close of 01 March 2022 candle when the trend was reversed by sellers from the resistance of 48238 as of 01 April 202. The BTCUSD pair resected the zone and rejected the price which took the price down.
Due to the high record of inflation, we can see how the cryptocurrency market reacted when a hike in prices of goods and services, and also the BTCUSD price reacts to news of inflation as it correlates with digital gold.
Looking at the chart, the price of bitcoin is around the support zone of 39600 which may either break out below the levels or the price may establish the zone as a support for the price to bounce up if the short position traders fail to close below the zone.
Weekly Chart
Weekly Resistance Levels: 59250, 50000.
Weekly Support Levels: 37000, 28600, 34000
The bearish momentum continues as the weekly chart candle shows evening star formation and Indian brokers expect the bearish momentum to continue as the price of BTCUSD approaches the support zone of 37000.
The Psychology zones are critical for the traders as the price will either break the support level for the price to drop lower or we see the long position trades come into the market from the zone to reject the price.
The rejection of the price around the resistance zone of 28th March 2022 (48238) created a Doji candle which shows that Buyers are out of the cryptocurrency market as the price hits the resistance zones.
Daily Chart
Daily Resistance Levels: 48234, 50000.
Daily Support Levels: 37500, 34000
Some cryptocurrency analysts interpreted the inflation report as one of the worst in years according to MicroStrategy CEO Michael Saylor. The BTCUSD pair on the daily frame broke out below the trend line connecting the higher lows on the chart. More Indian brokers who saw the reversal candlestick took advantage of the market structure.
If the price of BTCUSD finally breaks out from the bearish flag we may see the bearish drive past the low zones of the daily chart (34000).
The support zones have held their position as of 21 June 2021, 19 June 2021, 24th January, and 21 February 2022. If all things are equal the price of Bitcoin could rise from the zones.
Bullish Scenario:
A bullish scenario is not in sight at the moment because the price of the BTCUSD pair is not close to the major support zones of 37000 where the price of bitcoin jumped as of 14th March 2022. The cryptocurrency market may see another Bullish rally from the levels of support.
Bearish Scenario:
Looking at the daily chart, the Indian brokers with the short position are their position as they intend that the price will need to dip lower and lower toward 34000 levels.
Bitcoin BTC News Events
Inflation storm and more buying of Bitcoin.
According to Ricardo Salinas Pliego, the inflation fangs will continue to devour global economies and other markets in cryptocurrencies. The recent pandemic saga has influenced the government to inflate the money supply and there is no escape route according to him.
He encourages investors, retail traders, and crypto brokers to buy Bitcoin so that you can have savings and take care of your money because you can’t escape the negative repercussion.
Ricardo Salinas is the third-richest person in Mexico and tweeted that buying the cryptocurrency asset is like cushioning yourself against tough times ahead. He says that the US Federal has not been able to show that strong handling of the high US inflation which can trigger an economic meltdown globally.
The third richest man in Mexico shows concern about the digital currency introduced by the central bank (CBDC). He feels that the money can be worst than the US dollar when it is issued because people will have full control over their spending habits.
However, he believed that the BTCUSD pair should be bought and other altcoins sold off in the cryptocurrency market.
Conclusion and Projection
Cryptocurrency traders will be waiting for the market’s reactions as Bitcoin bulls struggle to establish support around the previous round-number price levels.
Meanwhile, bearish momentum persists as BTCUSD short-sellers look to breach the old support zones [33K and 28K] in a bid to resume the downward trend.
This article will not be giving advice for investment. It is strictly for educational purposes. Please consult your financial advisor when trading on leverage instruments, as we will not be liable for any losses incurred. Your capital may be at risk
He has over 7 years of experience in crypto trading.
noahjones@crypto.auz.net
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