The price of Bitcoin has been declining over the past few days, almost reversing all gains from the past greenish week. It lost $6.5K over the past four days alone.
As of press time, the largest cryptocurrency, by market capitalization, was changing hands at $37.8K, below the crucial $40K mark as crypto assets posted significant sell-offs over the war in Ukraine.
The stakes for both sides in the ground war looks set to rise as Russia’s invasion of Ukraine heads toward its two-week mark, with potentially catastrophic consequences for civilians and increased challenges for Ukraine’s remarkably successful defense.
President Vladimir Putin reiterated on Sunday that the war will continue until Ukraine complies with his demands and ceases its resistance, dimming hopes for a negotiated settlement. Putin has stated that Ukraine needs to “demilitarize,” and has made it clear how he plans to do it: by removing the current government.
With bitcoin’s price rising from $38,000 to above $45,000 by midday Wednesday, it’s been quite the round trip for the bulls in the past week.
Positive news for the bulls
- Despite fear and uncertainty in the market, there is a greater divergence between short-term and long-term holders (accumulating and spending losses) in this crash than in May 2021 when the market dropped 50%.
- Technical indicators show both the 100-day moving average and the $45K resistance level have been rejected impulsively.
- The price of Bitcoin also fell below the 50-day moving average once again, spreading fear throughout the market.
- In any case, there is still the possibility of reclaiming above the significant moving average line within the next few days. It is possible that another attempt at the $45K resolution will be made in that case.
- Alternatively, if BTC doesn’t recover in the next few days, the next level of support will be $35K, the level that the bulls defended the last time it was tested on the day of the Rissian invasion.