Bitcoin (BTC) Sees Deep Red Amidst Ongoing Russia Threat
It was back into the red for Bitcoin (BTC) on Sunday, marking a 4th loss in 5-sessions. Geopolitics continued to be the key driver. The ongoing threat of Russia invading the Ukraine weighed on Bitcoin and the broader market. On the regulatory front, the imminent release of a White House executive order on cryptos also remains market negative, however.
Following a modest 0.28% gain on Saturday, Bitcoin fell by 4.26% to end the day at $38,397.
Things were not much better for the rest of the top 10 cryptos.
Avalanche (AVAX) led the way down, sliding by 9.20%. ADA (-6.52%), BNB (-4.80%), ETH (-5.14%), and XRP (-5.49%) also struggled. LUNA and SOL saw relatively modest losses of 2.07% and 0.63% respectively.
Bitcoin Fear & Greed Index in Extreme Fear Zone
On Sunday, the Bitcoin Fear & Greed Index rose to 27/100 and back into the Fear zone, supported by Bitcoin’s modest gain on Saturday. Sunday’s reversal, however, saw the Index fall back to 25/100 and back into the “Extreme Fear” zone this morning.
For the Bitcoin bulls, the Index will need to move back through last week’s 54/100 high to bring $50,000 levels back into play for Bitcoin. A fall back through to sub-20/100 would bring sub-$30,000 levels back into play.
Bitcoin Price Action
At the time of writing, Bitcoin was down by 0.02% to $38,390. A move through the day’s $38,853 pivot would support a run the first major resistance level at $39,687. In the event of an extended rally, Bitcoin could test resistance at $42,000 before any pullback. The second major resistance level sits at $40,976.
Failure to move through the pivot would bring the first major support level at $37,564 into play. In the event of an extended sell-off, the second major support level at $36,730 would likely come into play.
Looking at the EMAs and 4-hourly candlesticks (below), the signal is bearish. Bitcoin continues to sit well below 50-day EMA. On Sunday, we saw a bearish cross, with the 50-day EMA crossing through the 200-day and the 100-day EMAs. A further pullback of the 50-day EMA from the 100-day and 200-day EMAs would place further downward pressure on Bitcoin.
For the bulls, a Bitcoin move back through the 50-day EMA, currently at $41,100 levels, would provide some support.
Market angst over the ongoing threat of a Russian invasion of the Ukraine could bring further downside for Bitcoin and the broader market. Influence from the U.S futures is likely later in the day. In the early hours of this morning, the U.S futures responded to news updates from the weekend on Russia and the Ukraine. At the time of writing, the NASDAQ 100 mini was down by 150 points.