Bitcoin Breaks Key Resistance, Crosses USD 47K as Terra Buys More BTC, Liquidations Soar
Bitcoin (BTC) broke through a key resistance level and reached a price well above USD 47,000 overnight. The gain was supported by Terra (LUNA)'s continued buying of BTC and by high liquidations of leveraged short positions.
The number one cryptocurrency on Monday reached a high of USD 47,650, before settling just above the USD 47,000 mark as of 10:07 UTC. The current price means that bitcoin is up 5.7% for the past 24 hours and 14% for the past 7 days.
The USD 45,000 area has acted as strong resistance for the bitcoin price throughout 2022, and a break through this level is thus seen as an important bullish sign for the cryptocurrency.
Notably, the latest gain for bitcoin means that the coin is now essentially flat for the year, after having remained lower than its price on January 1 2022 every day of this year.
BTC/USD year-to-date:
Today’s strong gain for bitcoin was supported by an ongoing buying spree by Luna Foundation Guard, the foundation behind the stablecoin protocol Terra.
Terra earlier this year unveiled a plan to partly back its stablecoin UST with bitcoin.
Although not officially confirmed by the team, the purchases have been added to a wallet that OKLink has marked as belonging to Luna Foundation Guard. The latest purchase now appears to have been made on Monday morning with BTC 2,830 added, after a break over the weekend.
The balance of the bitcoin wallet has climbed steadily since March 21, and now holds close to BTC 27,785, worth some USD 1.3bn.
Terra founder Do Kwon has previously said that UST will eventually be backed by more than USD 10bn in BTC reserves.
Luna Foundation Guard’s BTC wallet balance:
Meanwhile, the surge in the bitcoin price overnight was also supported by a high number of liquidations of
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