Bitcoin (BTC) threatened significant retracement overnight until March 23, as weekly highs saw the first test.
BTC / USD 1-hour candlestick chart (bitstamp). Source: TradingView
BTC is missing a “very bullish” daily closing price
Data from Cointelegraph Markets Pro and TradingView show that Bitcoin has dropped BTC / USD from a peak of $ 43,337 to a low of $ 41,779.
At the time of writing, the pair was trading at around $ 42,300, but it’s still down $ 1,000 from the highs.
Tuesday’s enthusiasm was clearly demonstrated, thanks to an increase in publicity focused on the apparent $ 3 billion BTC buy-in of blockchain protocol Terra.
According to co-founder Do Kwon, most of the money that was planned to be used to support Terra’s new TerraUSD (UST) stablecoin has not yet been purchased, leaving room for further pressure on BTC prices. I have.
Nonetheless, the market mood cooled overnight, and Bitcoin missed what would have been “very bullish” at around $ 200 a day.
#Bitcoin Closing daily candles for over $ 42.6k is very bullish
— Matthew Hyland (@MatthewHyland_) March 22, 2022
Analyst Matthew Highland was convinced that Bitcoin was “changing the flow,” but above all. Ongoing breakout attempts Bitcoin’s daily relative strength index (RSI).
He said the downtrend had continued even before the all-time highs in November.
BTC / USD with RSI annotated charts. Source: Matthew Hyland / Twitter
Meanwhile, Trader Credible Crypto emphasized the importance of flipping a similar level of $ 42,500.
“42.5k is broken. If this is a true breakout, I hope this level will be established as support,” he writes. Twitter update On that day.
“That is, the rise should continue and we want to see integration beyond this level for continuation. Let’s see what we can get in the next day or two.”
European Central Bank is looking at new balance sheet records
In macro, the news that Thailand decided to ban cryptocurrencies for payment provided a sour mood from Asia, but in Europe, the European Central Bank’s (ECB) balance sheet hit a record high. did.
Related: $ 43,000 BTC flipping support?Not immediately, according to derivative metrics
Market commentator Holger Zschaepitz, now over € 8.7 trillion ($ 9.59 trillion), has begun to question whether the “empty” of ECB asset purchases is the limit.
“Is only the sky the limit? The ECB’s balance sheet has reached a new ATH of over € 8.7 trillion. Total assets are an additional € 13 billion as the ECB continues to buy bonds despite record highs. It has increased, “he said. wrap up Wednesday with charts from Bloomberg Terminal.
“Eurozone inflation. The balance sheet is currently 82% of Eurozone GDP, while the Fed is 37% and the Bank of Japan is 136%.”
ECB balance sheet chart. Source: Holger Zschaepitz / Twitter
As Cointelegraph reported, the US Federal Reserve has stopped buying assets and will begin shrinking its balance sheet in the future.