Bitcoin had finally broken past the $40,000 over the past 24 hours owing to Luna Foundation Guard’s (LFG) BTC buying spree. However, the price action did not last long as Bitcoin, which had seen a 7% increase and subsequently fell by 4%, at the time that this article was written. At the time of writing, Bitcoin’s 24-hour trading volume also suffered.
Bitcoin’s fear index read 28 which corresponds with the fear sentiment, this reflected fear surrounding another crash for the king coin. It turns out that there hasn’t been much impact on the prices even after the LFG Bitcoin purchase.
LFG had 2508 BTC, which was worth more than $100 million to its UST reserve at the start of this week. This brings the total BTC number to $42,406.92.
Additionally, the U.S inflation rate spiked by 8.5%, a rate that hasn’t been recorded in over 4 decades. After a drop of 2.5% over the last day, the global cryptocurrency market capital stood at $1.95 trillion.
Review of Bitcoin Prices: A Four Hour Chart
Bitcoin trades at around $40,030, just slightly below the $40,000 mark as of this writing. Over the past 24 hours, Bitcoin had broken through its initial resistance of $40 956
However, at press time the asset traded below that resistance mark. Prices could rise to $42,000 if bulls continue their push over the coming trading sessions.
BTC will trade close to the $38,000 support level if it falls from the current price. If the price falls below this level, then BTC would trade near $38,000 support line.
As the green closing of the last session was completed, trading volume started to rise. This is a sign that bullish actions are taking place.
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Technical Analysis
Although Bitcoin experienced a short recovery in buying pressure after recent falls buyers left the market, it has since fallen back to its previous levels. BTC saw a lot of selling activity during the month.
The Relative Strength Index showed that the coin was below the half-line, which meant there were more sellers than buyers. The fear index also showed this. A stronger market is needed to allow buyers to re-enter the market.
Chaikin Money Flow was used to calculate capital inflows and outflows. It also conformed with the RSI. As shown on the 4-hour chart, capital outflows exceeded capital inflows.
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Bitcoin may try to recover its earlier levels, as it has hovered close to $40,000 resistance. As shown by the indicator, there was a positive shift in price.
MACD determines how much the coin is worth.
BTC saw a bullish crossover during the writing of this article. This meant that BTC could teach its immediate price ceiling over the following trading sessions. MACD’s green histograms indicated bullishness at the time it was written.