One of the most significant losses of value occurred last week in crypto history. Bitcoin and the general crypto market crisis was hit by the Terra ecosystem’s collapse. Bitcoin fell to below $30,000. Evidently, institutions took advantage of this situation.
Bitcoin investors flood
According to reports, institutions invested $300 million in exchange-traded Bitcoin funds over the past week. CoinShares reported that the week prior saw record crypto inflows. Inflows for the week were $274 Million.
North American investors invested $312 million in cryptocurrency last week. However, European investors witnessed a net outflow of $38 million. According to CoinShares’ report:
The recent UST stable currency de-peg, and the associated wide sell-off were seen by investors as a buy opportunity. Bitcoin was the principal beneficiary. Inflows of US$299m were received last week. It is clear that investors are flocking to bitcoin’s relative safety.
CoinShares’ head of research, James Butterfill, expressed amazement at the unprecedented volume of bullish investments in Bitcoin funds despite increased market volatility. “It’s the highest weekly total since October 2021, and the 19th highest since records began in 2015,” he said.
Source: Coinshares
Bitcoin’s price peaked at $69,000 in November of last year, and it has since been on a steady decline, losing more than 50% of its value. Since May 2022, the Bitcoin price has fallen by over 20%.
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What would happen if the price of goods and services rises?
Bitcoin plunged against the US Dollar and reached the $29,000 level. BTC needs to clear the $30,500 barrier in order for it to continue its steady climb. After failing to get traction over $31,000, Bitcoin fell below $30,000
Today’s price trading is above both the $30,000 as well the hourly simple moving orders of 100 hours. The hourly chart for the BTC/USD pairs showed a break above a negative connecting trend line that has resistance at $29,600. If the pair closes above $30,500 resistance, it could gain bullish momentum.
The price dropped below $29,000. However, the bulls were still active at $29,000. Following a near $29,000.060 low, the price is now recovering its losses. Clear upward movement was evident above the $29,000.500 threshold. This price exceeded the 23.6 Percent Fib Retracement Level of the Latest Drop from The Swing High of $31,390 To The Low of $29,000.
It is currently nearing the $30,000.00 mark of resistance. It’s approaching the 50% Fib retracement level of the latest drop from the swing high of $31,390 to the low of $29,060. It could be possible to make a significant gain with a solid close of $30,300.
BTC/USD trades at slightly more than $30k Source: TradingView
The next significant resistance level is around $31,400. The next session could see a break above the $30.300 and $31,400 resistance levels. This would likely kick-start an upswing. The next major resistance level could be at $32,500, and then the price may rise to $34,000.
It could drop further if bitcoin does not break through the $31,400 barrier. However, immediate support is provided by $29,600.
This is the initial support level. It stands at $29,000 It could signal the beginning of a major fall if the price falls below $29,000.
TA: Bitcoin Holds Key Support, Why BTC Must Clear This Resistance| TA: Bitcoin Holds Key Support, Why BTC Must Clear This Resistance
Featured Image from iStockPhoto. Charts from TradingView.com