News on Russia and the Ukraine Sink the NASDAQ 100 and Bitcoin (BTC)

It was a 2^nd consecutive day in the red for Bitcoin (BTC) on Thursday.  Once more, Bitcoin tracked the NASDAQ 100, as the markets responded to news updates on Russia and the Ukraine.

Following a 1.53% fall on Wednesday, Bitcoin slid by 7.6% to end the day at $40,547. Amidst a broad-based crypto sell-off, Bitcoin tested support at $40,000 before a partial recovery to $40,500 levels. The day’s major support levels provided little by way of support, with Bitcoin sliding through the day’s major support levels. More significantly, however, was a slide through the 50-day, 100-day, and 200-day EMAs.

It was also a bearish session for the rest of the crypto top 10.

Terra (LUNA) led the way down, sliding by 10.8%. Things were not much better for Solana (SOL) and Ripple (XRP), which ended the day with losses of 8.2% and 8.4% respectively. Avalanche (AVAX) and Ethereum (ETH) also struggled, with both falling by 7.4% respectively.

NASDAQ 100 Tests Bitcoin Support

Following Wednesday’s modest 0.11% loss, the NASDAQ 100 slid by 2.88% on Thursday. Market reaction to news of an imminent Russian invasion of the Ukraine weighed on riskier assets.

For the day ahead, news updates from Russia and the U.S will need continued monitoring. On the U.S. economic data front, stats are limited to housing sector numbers that will have a muted impact on the markets.

Bitcoin Fear & Greed Index Continues Upswing

In spite of Wednesday’s pullback, the Bitcoin Fear & Greed Index had risen from 51/100 to 52/100 on Thursday morning. Thursday’s sell-off, however, saw the Index slid back to 30/100 and back deep into the Fear zone.

Near-term, 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-25/100 would bring sub-$30,000 levels back into play.

Bitcoin Price Action

At the time of writing, Bitcoin was up by 0.03% to $40,558. A move through the day’s $41,613 pivot would support a run at Thursday’s high $44,188. Bitcoin would need plenty of support to break out from the first major resistance level at $43,122. In the event of an extended rally, Bitcoin could test the second major resistance level at $45,697 before any pullback.

Failure to move through the pivot would bring the first major support level at $39,038 into play. Barring another extended sell-off, however, Bitcoin should avoid the second major support level at $37,529.

Looking at the EMAs and 4-hourly candlesticks (below), the signal has become less bullish. Bitcoin continues to sit below 50-day EMA, which has narrowed on the 100-day and 200-day EMAs overnight.  Following Thursday’s sell-off, the 100-day EMA has also narrowed on the 200-day EMA. A bearish cross of the 100-day EMA through the 200-day EMA would deliver another heavy loss.

For the bulls, a Bitcoin move back through the 200-day EMA, currently at $42,000, would be key to shifting market sentiment.

At the time of writing, the NASDAQ 100 mini was up by 14.25 points, providing modest Bitcoin support.