Bitcoin (BTC) could be set for a repeat of this week’s rally to weekly highs after the Terra Blockchain protocol appeared poised to buy another $125 million worth of BTC.
A wallet thought to belong to Terra but not officially confirmed to be under its control sent another 125 million Tether (USDT) to Binance on March 23.
Rinse and repeat to get a 5.6% BTC price increase?
The Bitcoin price narrative gained a new player this week after Terra co-founder, Do Kwon, will blurt out a plan to back a new US dollar stablecoin, TerraUSD (UST) with BTC and Terra’s LUNA token.
The purchase required to do so amounts to $3bn, he told commentator Udi Wertheimer last week, adding that most of the purchase had not yet occurred at that point.
ANDAnalysis of the alleged wallet supports that thesis, with the first transaction of 125 million USDT directed to Binance during the night of March 21. In the following hours, the BTC/USD pair gained around 5.5%.
Now, an identical transaction has taken place, fueling fresh speculation that Bitcoin could soon see another $125 million in buyer demand executed within minutes.
For popular trader, analyst, and commentator Cantering Clark, the move, in and of itself, was enough to enter the market.
“The Terra foundation just sent another 125 million to Binance. The last time they did this was just before they went into BTC. I plan to follow them. I will cut and re-evaluate if we lose these lows”, said to Twitter followers.
Kwon himself had not confirmed any of the activity at the time of this writing, as he claimed that he had said too much during the interview with Wertheimer.
Trader Demands Retest of $45,500 Level to Pay Attention
However, at the open on Wall Street on March 23, there was still no sign of a new upward momentum move in the BTC/USD markets.
The pair traded around $42,000, down more than $1,300 from the previous day’s highs.data from Cointelegraph Markets Pro and TradingView showed.
“$45,500 has to be broken,” added trader, analyst, and podcast host Scott Melker in his latest YouTube update of the day, ongoing as of this writing.
“Anything else is just a joke.”
However, on the daily chart, he noted that the narrowing of the Bollinger Bands hinted at incoming volatility, with the BTC/USD pair touching the upper band this week.
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