A new week has begun but it will be a week unlike anything that has happened in the past with Bitcoin and its holders.
Bitcoin (BTC) started the new week when it was covered by political conflict events taking place in Ukraine. The situation in Kiev has shaken global markets, and developments there can create psychological waves that last minutes or even hours.
But the most difficult times are also the opportunities for BTC to prove its worth, as investors flee from fiat currencies to find a safer place to store their assets.
Let’s take a look at the factors that investors need to pay attention to for BTC in the new week:
The war between Ukraine and Russia covers
It goes without saying that this conflict is a key factor affecting every market, not just crypto, this week.
New developments continuously appear, consecutive sanctions are introduced, both sides and their allies show that they are very serious with their actions. The market, of course, will react to emerging risks and possibilities.
As for Russia, its economy has reacted strongly. The stock market stopped trading, the outlook for the ruble was also bleak as the currency lost a record value.
Meanwhile, the other side of the Ukraine front is calling for millions of dollars in donations through crypto assets. Not only that, Mykhailo Fedorov, Deputy Prime Minister of this country also suggested that exchanges “ban” accounts in the names of Russians and Belarusians.
Oil, but not Russian oil, is one of the few markets to benefit from the clash between the two neighbors. BTC also reacted to the event but quickly stabilized again.
Even so, as the correlation between BTC and altcoins with the traditional stock market remains, investors looking for opportunities at low timeframes will inevitably have a “headache.” , regardless of how this war unfolds.
Price Action or just news impact?
With traditional markets highly volatile as soon as they opened on February 28, it is difficult to capture BTC price movement on short timeframes.
The $40,000 mark is a clear resistance area for buyers to break if they want to push the price up. The problem is, any strong move in the moment could just be the result of a macro event, and that’s not considered a reliable long-term signal.
“A rough week awaits risk assets, with BTC down 4% (as of Sunday morning) from the end of Friday,” said McGlone, head of commodity strategy at research and development. Bloomberg’s data collection said.
Meanwhile, Decodejar, a famous Twitter account, said that at the price point of $ 38,000, a larger trading volume was recorded compared to other prices at the same fluctuation range.
4th month of consecutive discounts
For the first time since 2018, BTC faces four consecutive bearish red candles. According to analyst Kevin Svenson, “If on the monthly chart the BTC price closes below $37,000, we should see a bearish signal, similar to previous macro bearish waves.”
Meanwhile, the Rekt Capital fund, based on technical analysis signals, has warned that BTC may return to the $28,000 mark.
Investors still have reason to be confident, but the market sentiment indicator shows the opposite
Ignoring geopolitical factors, investors still have reasons to keep their faith in this cryptocurrency, when “miners” are still mining and the hash rate mining equipment) as well as increasing difficulty.
Even so, it is clear that BTC is not reacting positively to the war in Europe. Aside from its potential role, the largest cryptocurrency has yet to appear to boost investor sentiment in recent events.
Not only that, according to the Crypto Fear & Greed Index (psychological indicator), the market is rapidly becoming “anxious”, having dropped from 26/100 of Sunday (February 27), down to 20/100 (an extremely worrying mark), also the lowest point since February 22.
To be more clear, it can be compared with the lowest low of BTC in January 2022, when this coin was priced at 32,800 USD, equivalent to 11/100 on the Fear & Greed scale.
Vinh Ngo (According to CoinTelegraph)
Cryptocurrencies have the upper hand in war
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