The wave of sales in UST and Terra cryptocurrency affected the market. The collapse of two major projects, at a time when inflation and interest rate hikes increased the fragility of the market, increased the wave size of sales.
Terra announced today that 80,000 bitcoinHe announced that he had taken it out of his hands.
Although the arrival of such a large sale in a short time caused a 20% dump in BTC, there was also a demand for 80,000 Bitcoins around $30,000, and the price experienced a 12% rise from the $26,000 levels.
With Terra’s announcement that he sold his BTCs, the selling pressure in this direction was also removed.
We see that the US stock markets made a selling entry to the week, but the losses in Bitcoin are much more.
Are These Drops A Buying Opportunity?
At this stage, we will stick to our previous analysis of new purchases and wait for the price to drop to ma200 weekly ($22,000 on average) until we see any signs of a serious reversal in the market.
Although the price has not yet fallen to these levels, some indicators are giving signals that we have reached the bottom.
The Bitcoin logarithmic growth waves indicator, which has historically been very successful in finding bottoms in Bitcoin, is in the buy zone.
As you can see, in the Covid sale in March 2020, the price briefly broke the bottom line of this indicator and re-entered it in a short time.
Similarly, now we see that the bottom line is broken due to the Terra and UST incident.
In the previous move, the recovery was much more drastic when the price also touched the weekly ma200.
While it is not known whether the market maker will reduce the price to ma200 again after this decrease, according to this indicator, we are at historical lows for partial purchases.
*Not Investment Advice.