Bitcoin price dropped below $37,500 yesterday after Russian President Vladimir Putin placed his nuclear forces on alert. At the time of writing, BTC is changing hands at $38,275.
BTC/USD 4-hour chart | Source: TradingView
Investors are likely to remain active trading between Bitcoin price at $30,000 and $46,000
After mainly holding their own through the early part of the weekend, bitcoin and other major cryptocurrencies plummeted on Sunday as the war in Ukraine intensified.
On Sunday, Russian President Vladimir Putin placed his nuclear forces on alert in response to sanctions and other measures that the U.S. and it’s Western European allies have taken to punish Russia and support Ukraine. Satellite images showed Russian troops heading toward the Ukraine capital, Kyiv. Later in the day, Ukraine announced it had agreed to hold peace talks with Russia to end the invasion.
At press time, Bitcoin was trading under $38,300, down over 3%. Ether was changing hands at about $2,600, down over 5%. The second-largest crypto by market cap started the weekend at over $2,700. Almost all significant altcoins had dropped significantly. Terra (Luna) and Avalanche (AVAX) were off about 7% and 8.5%, respectively.
Bitcoin had returned to the same $37,000 support line it faced last Monday. But a broader sell-off on risk-on assets stemming from larger economic pressures could keep the leading cryptocurrency under $37,000 or force it much lower in the days ahead.
If it dips, the following support line would appear at $35,000. It experienced a sharp reversal on Thursday 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.
“Bitcoin’s token circulation hit a 9-month high, revealing just how polarized traders have become with the war. This circulation spike was similar to BlackThursday back in Mar 2020, where crypto traders sold at the bottom at the beginning of COVID”, Santiment stated.
BTC returned above $38,000 and is up 6% over the past 24 hours. On Friday, the cryptocurrency was down 2% over the previous week, which meant the recent bounce had not shifted the short-term downtrend. On Sunday, bitcoin had dropped below $37,500 as the war in Ukraine intensified.
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.