Bitcoin (BTC) threatened a major setback on the night of March 23, when the weekly rallies passed the first test.
Hourly candlestick chart BTC / USD (bit stamp). Source: Trading View
BTC misses the “too bullish” daily industry
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD fell from a peak of $ 43,337 to $ 41,779 on Bitstamp before recovering.
At the time of writing, the pair is trading at around $ 42,300, which is still below the $ 1,000 high.
The enthusiasm was clearly visible on Tuesday thanks to the increased publicity focused on the $ 3 billion bitcoin purchase of the Blockchain Terra protocol.
According to co-founder Do Kwon, most of the funds that were to be used to support the new TerraUSD (UST) stack coin have not yet been purchased, which allows for further potential price falls for BTC.
However, the mood in the markets calmed overnight and Bitcoin lost what would have been a “very bullish” daily reading close to $ 200.
Analyst Matthew Hyland was sure that “the trend is changing” for Bitcoin, but cites, among other things, the ongoing attempt to break Bitcoin’s daily Relative Strength Index (RSI).
He noted that his downtrend was already in place before the record in November.
BTC / USD with RSI chart commented. Source: Matthew Hyland / Twitter.
Meanwhile, Trader Credible Crypto highlighted a similar level of $ 42,500 as important for a reversal.
“42.5K broke, now we want this level to be decided as support if this is a real outbreak,” he wrote in an update on Twitter the same day.
“This means the rally has to hold, and we want to see some consolidation above this level to continue. Let’s see what we can do in a day or two.”
The European Central Bank sees a new record in the balance sheet
At the macro level, the news that Thailand has decided to ban payment cryptocurrencies has weakened sentiment in Asia, while the balance sheet of the European Central Bank (ECB) in Europe has risen to a record high.
Related topics: Support for the $ 43,000 USD BTC Flip? Not in the near future, according to derived indicators
With the amount now exceeding 8.7 trillion euros (9.59 trillion dollars), market commentator Holger Schapitz has begun to question whether the purchase of assets from the European Central Bank is “maximum”.
“Only the sky is the limit? The European Central Bank’s balance sheet has reached a new ATH value of> 8.7 trillion euros. Total assets rose by a further 13 billion euros as the ECB continues to buy bonds despite record high levels, “he concluded on Wednesday with the Bloomberg Terminal Chart.
«Inflation in the eurozone. The balance is now 82% of the eurozone’s GDP against 37% for the Federal Reserve and 136% for the Bank of Japan. ”
The European Central Bank’s balance sheet. Source: Holger Zschepitz / Twitter.
As the Cointelegraph reported, the US Federal Reserve plans to stop buying assets and start reducing its balance sheet going forward.