Bitcoin (BTC) steadied on Thursday to restore some order in the wake of the Terra LUNA collapse.
Tether (USDT) tested investor resolve on Thursday after losing parity before returning to $0.99 levels
Bitcoin (BTC) technical indicators flash red. Bitcoin sits well below the 50-day EMA.
Bitcoin (BTC) slipped by 0.35% on Thursday. Following a 6.44% decline on Wednesday, bitcoin ended the day at $28,916. Stablecoin moves delivered another volatile session.
A bearish morning saw bitcoin slide to a day low of $25,836 before finding support. Late in the day, bitcoin retested resistance at $30,000 before easing back.
Stablecoins Send Another Shockwave before Order Returns
On Thursday, Tether (USDT) drew unwanted attention, with USDT falling to a day low of $0.9511. The loss of parity with the dollar sent another shockwave through the crypto market.
Fears of another stablecoin collapse led bitcoin to its day low of $25,836 and the total crypto market cap to $1,082 billion. On Monday, the market cap had hit a current week high of $1,569 billion before the TerraUSD and Terra LUNA implosion.
Late in the day, however, the crypto majors found support as USDT returned to $0.99 levels.
The panic on the day ensued despite USDT avoiding current year lows. On February 28, USDT fell to a current-year low of $0.8679 before returning to parity. Bitcoin surged by 14.5% on that day.
While USDT restored confidence, UST and LUNA continued to test investor appetite.
LUNA all but vanished with a 99% decline to end the day at $0.01, with UST ending the day at $0.378.
While bitcoin steadied, the Fear & Greed Index suggests more trouble ahead.
Bitcoin Fear & Greed Index Falls Back
Today, the Fear and Greed Index fell from 12/100 to 10/100. The decline came despite a bitcoin recovery from heavy losses as the dust began to settle.
For bitcoin investors, the fall deeper into the “Extreme Fear” zone relays investor anxiety over the threat of another sell-off.
Bitcoin (BTC) Price Action
At the time of writing, BTC was up 0.07% to $28,936.
BTC will need to avoid the $28,276 pivot to target the First Major Resistance Level at $30,721 and resistance at $31,500.
BTC would need the broader crypto market to support a return to $30,000.
An extended rally would test the Second Major Resistance Level at $32,524 and resistance at $33,500. The Third Major Resistance Level sits at $36,779.
A fall through the pivot would test the First Major Support Level at $26,475. Barring another extended sell-off, BTC should steer clear of sub-$25,000 levels. The Second Major Support Level sits at $24,027.
Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. BTC sits below the 50-day EMA, currently at $32,639. This morning, the 50-day pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; BTC negative.
A move through the 50-day EMA would support a run at $35,500.
This article was originally posted on FX Empire