Bitcoin had remained flat throughout most of the day Tuesday after opening at just below $37,000. Bitcoin price ticked up slightly after U.S. President Joe Biden announced new sanctions against Russia. The largest cryptocurrency by market capitalization was changing hands at $38,093 at press time.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price and Ether rose slightly
Bitcoin investors have been monitoring the growing tensions over Ukraine as Russia reportedly ponders a full-scale invasion, though analysts are split over the long- and short-term implications. Last week, the largest cryptocurrency by market capitalization dipped below $40,000 for the first time since Jan. 21, causing traders to ponder how Russia’s growing military presence in Ukraine will shake up the crypto market.
So far, Bitcoin hasn’t been the inflation hedge many had hoped. Bitcoin is approaching a retest of the intermediate round level of $35,000, near where buyers became more active at the end of last month.
Bitcoin and Ether were roughly flat over the past 24 hours, compared with a 7% drop in XRP and a 5% loss in SHIB. Most altcoins underperformed BTC on Tuesday, suggesting a lower appetite for risk among crypto traders. Technicals show short-term support for BTC at $37,000, although stronger support is around $30,000. For now, the upside appears to be limited toward the $40,000-$45,000 resistance zone. But the path forward for BTC could be volatile. Ether was trading just over $2,634, up nearly 2% for the same period.
“As assets have mostly ranged on Tuesday, altcoins like ADA, MATIC, CRO, and LINK look particularly oversold, according to our screener. We account for high market caps, transaction volume, and active addresses, combined with low returns on networks”, Santiment stated.
Bitcoin sellers were active over the weekend, which contributed to negative momentum. The cryptocurrency appears to be oversold on intraday charts, although a price bounce could be limited toward $40,000 resistance. Lower support is seen at around $30,000, stabilizing the sell-off.
BTC has been down roughly 15% over the past week. The downtrend since November 2021 remains intact, albeit within a long-term uptrend. That means price action tends to rise exponentially following cycle lows. For now, indicators do not suggest BTC is at a cycle low.
Previous drawdowns suggest selling pressure could continue over the short term. Currently, BTC is 43% off its all-time high near $69,000 reached in November 2021, compared with a 50% drop during the first half of 2021 and a 70% decline during the March 2020 crash. The most extreme peak-to-trough decline was roughly 80% during the 2018 bear market.
In this cycle, buyers will need to maintain support around the $27,000-$30,000 support zone to maintain the broader trend. The overall cryptocurrency market cap stands at $1.715 trillion, and Bitcoin Dominance is 42.1%.