Bitcoin price and other cryptocurrencies rose on Friday after Russia agreed to negotiate with Ukrainian officials. At the time of writing, it is changing hands at $39,719.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price bounce stalls below $40,000
Bitcoin experienced a sharp reversal and extended gains into Friday. For now, selling pressure has faded, which means buyers could remain active between the $30,000 and $46,000 range.
BTC returned above $38,000 and is up 6% over the past 24 hours. Still, the cryptocurrency is down 2% over the past week, which means the recent bounce has not shifted the short-term downtrend.
“As Bitcoin prices bottomed out at $34.7k with Thursday’s war news, whales have made some MASSIVE transactions. This has been the largest amount of both $100k+ and $1m+ BTC transactions since Jan. 24th, when prices jumped +15% the week following”, Santiment stated.
Thursday’s price action triggered initial downside exhaustion signals, per the DeMARK indicators, similar to what occurred on Jan. 24, which preceded a 30% upswing in price. Still, in bear markets, counter-trend signals can be brief or invalid depending on the status of long-term momentum readings. Currently, momentum remains negative on the weekly and monthly charts.
Immediate resistance is seen at $40,000, which could stall the current price bounce. There is stronger resistance at $46,700, which capped upside moves earlier this month.
“Altcoins have been absolutely thriving on a continued recovery effort by traders after war concerns suppressed prices two days ago. Heading into the weekend, projects like FTM, AAVE, GALA, ONE, and CBG have fired upwards in a big way”, Santiment stated.
In crypto markets, bitcoin underperformed most altcoins, suggesting a greater appetite for risk among investors. BTC was roughly flat over the past 24 hours, compared with a 5% gain in XRP and a 10% rise in Terra’s LUNA token over the same period. The price spike was among the biggest for LUNA after months of downward movements. Still, the price is down 30% from December’s all-time high of $103. Earlier this week, Singapore-based non-profit organization Luna Foundation Guard (LFG) said it would create a bitcoin-denominated reserve as an additional layer of security for UST, Terra’s decentralized stablecoin.
The overall cryptocurrency market cap stands at $1.798 trillion, and Bitcoin Dominance is 41.8%.