Bitcoin Struggles at $43,000: Why BTC Could Exhibit Correction
Skerdian Meta • 3 min read
The BTC/USD ended the day at $44,038.2 after hitting a high of $45,399.8 and a low of $42,705.0.For the third consecutive day, BTC/USD Bitcoin continued its gains and reached above $45,000 for the first time in a month. On Tuesday morning, the FBI reported that it had arrested a husband and wife who were accused of conspiring to launder 119,754 BTC coins that were stolen after a hacker attacked Bitfinex and initiated more than 20,000 unauthorized transactions. According to the Justice Department officials, the transactions’ cost at that time was $71 million in Bitcoin; but with the rise in the cryptocurrency’s value, it is now worth $4.5 billion.
Meanwhile, on Tuesday, the largest stock market operator in Canada, TMX Group, revealed its plans to launch its first cryptocurrency futures product in response to the desire of institutional investors to offset the risks involved in trading the relatively new asset class. TMX posted its fourth quarter results on Monday, and after that, the company’s CEO, John McKenzie, said that the group, which had 17 cryptocurrency exchange-traded funds listed on the Toronto Stock Exchange, now aims to release the product on the Montreal Exchange this year.
FTX Offers to Give Away Bitcoin During Super Bowl
Furthermore, the cryptocurrency exchange FTX announced on Monday that it was giving away Bitcoin during the Super Bowl this weekend. Super Bowl LVI is the upcoming championship game of the National Football League (NFL). The exchange’s website explained that they were making their big game debut and giving away the time their ad runs in Bitcoin.
On February 13, FTX’s Super Bowl commercial will run on NBC and the giveaway will begin when FTX announces it on Twitter. There will be four grand prizes, as each winner will receive BitcoinB deposited into their FTX account. The amount of bitcoin deposited will be equal to the ET time that the sponsor’s February 13, 2022 television commercial begins to be aired on NBC. The company clarified that if its commercial airs at 9:02 p.m., ET, then winners will receive 9.02 bitcoins. The news added strength to the rising prices of BTC/USD.
Additionally, a cryptocurrency-based travel rewards technology company announced on Tuesday that it was closing its oversubscribed $33 million seed round. FlyCoin’s revolutionary technology infrastructure provides many services, including travel and hospitality, insurance and benefits, and financial services, all with more powerful solutions to incentivize users in a more customer-centric way. FlyCoin users can earn its native token, FLY, a reward that appreciates in value and does not expire. This news had little to no impact on BTC/USD prices.
Daily Technical Levels
Pivot Point: 43360
Bitcoin (BTC/USD) Technical Outlook
Bitcoin’s price remained positive above the $42,000 mark. BTC gained momentum as it approached the $44,000 and $44,500 levels. It even broke through the $45,000 barrier and settled above the 100 hourly simple moving average. It reached a high of $45,500 before beginning a downward trend.
The price fell below the $44,000 support level. Moreover, on the hourly timeframe of the BTC/USD pair, there was a break below a key bullish trend line with support near $44,000. The pair even fell below the 50 percent Fib retracement level of the upward move from the swing low of $41,140 to the high of $45,500. On the other hand, the bulls held the $42,800 support zone.
The 61.8 percent Fib retracement level of the upward move from the $41,140 swing low to the $45,500 high was also a strong support level. The bitcoin price is now trading above $42,500 and the 100 hourly simple moving average. On the upside, an immediate resistance level is near $44,000. If BTC/USD fails to begin a fresh uptrend above $44,000, it may continue to drop. On the lower side, Bitcoin’s immediate support is near $42,800.
The next significant support is seen near $42,500 and the 100 hourly simple moving average. If the price breaks below the $42,500 support level, it could fall to the $41,200 level. Good luck!