Bitcoin (BTC) Treads Water as Markets Eye News on Russia

Bob Mason
Published: Feb 20, 2022, 01:03 UTC

It was a mixed Saturday for the crypto market. With the U.S markets closed, fears of a Russia invasion weighed on the crypto majors.

Coins of crypto currency are presented on a dark background. Virtual money concept.

Bitcoin (BTC) ended a 3-day losing streak on Saturday. The upside was modest, however, as geopolitics continued to peg back Bitcoin and the broader market. News updates on Russia and a possible invasion of the Ukraine left Bitcoin range-bound on the day. Following a 1.36% fall on Friday, Bitcoin rose by 0.28% to end the day at $40,107.

It was a mixed session for the rest of the crypto top 10, however.

Avalanche (AVAX) joined Bitcoin in the green, rising by 1.51%, with Solana (SOL) and Cardano (ADA) rising by 1.58% and by 0.10% respectively. Terra (LUNA) also avoided the red, rising by 0.49%, with Ripple (XRP) rallying by 4.85%. Ethereum (ETH) ended the day down by 0.56%.

Bitcoin Fear & Greed Index Continues Upswing

Following Saturday’s slide back to 25/100 and fall into the Extreme Fear zone, the Bitcoin Fear & Greed Index rose to 27/100 and back into the Fear zone this morning. The modest increase came in spite of ongoing concerns over a Russian invasion of the Ukraine.

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 Fear & Greed Index 200222

Bitcoin Price Action

At the time of writing, Bitcoin was down by 0.39% to $39,950. A move through the day’s $40,079 pivot would support a run the first major resistance level at $40,493. In the event of an extended rally, Bitcoin could test the third major resistance level at $41,679 and resistance at $42,000 before any pullback. The second major resistance level sits at $40,879.

Failure to move through the pivot would bring the first major support level at $39,693 into play. In the event of an extended sell-off, Bitcoin could test the third major support level at $38,479. The second major support level sits at $39,279.

BTCUSD 200222 Daily

Looking at the EMAs and 4-hourly candlesticks (below), the signal has become yet more bearish. Bitcoin continues to sit well below 50-day EMA, which has converged on the 100-day and 200-day EMAs overnight.  On Saturday, we saw a bearish cross, with the 100-day EMA crossing through the 200-day EMA. A bearish cross of the 50-day EMA through the 100-day the 200-day EMAs would bring sub-$39,000 into play.

For the bulls, a Bitcoin move back through the 100-day EMA, currently at $41,600, would provide some support.

BTCUSD 200222 4-Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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