Unfortunately is bitcoin (BTC) have not been able to rally from a few days ago. Sentiment in the market has deteriorated somewhat again and as a result the price of bitcoin fell again below USD 42,000. Of course, this decline has everything to do with possible measures by the US central bank and the mounting geopolitical tensions in Eastern Europe.
$46,000 Rejection
After the inflation figures from the United States were announced two days ago, a period of huge volatility followed. The bitcoin price initially fell, but the price quickly rose again.
Unfortunately, this rally was short lived and the price was unable to break through the resistance around USD 46,000. New reports about the situation in Eastern Europe threw a spanner in the works for a possible further upward movement. Subsequently, a decline started that has not yet ended. The price is now around $42,400, at least 7.5% lower than two days ago.
During US trading hours #Bitcoin‘s price is also down this week. On the positive side bitcoin has gained some ground on Friday last week and over the weekend. So overall is looking a bit better. But short- to medium-term the macro environment remains uncertain. pic.twitter.com/8vxf3RDydm
– Jan Wüstenfeld (@JanWues) February 11, 2022
Fortunately, the bitcoin price is currently hitting an important area of support around USD 41,600. The bitcoin price has already tapped this area, so it is possible that this was the end of the correction. Of course, the price can also fall further and if the price falls through this zone of support, a further serious decline is very realistic.
Russia and Ukraine
Sentiment has deteriorated considerably yesterday and tonight. This, of course, has everything to do with the rising tension between Russia and Ukraine. Several Western countries have advised their people to leave Ukraine as soon as possible because of a possible armed conflict.
There is a realistic chance of war. War is obviously not good for the markets and that is why investors are anxious at the moment.
Bitcoin Fear and Greed Index is 44 — Neutral
Current price: $42,258 pic.twitter.com/A39pLJCr5T— Bitcoin Fear and Greed Index (@BitcoinFear) February 12, 2022
Despite the recent setbacks, sentiment is still a lot more positive than just a week ago. At the time, the sentiment was downright bad. Bitcoin’s rally from $33,000 has calmed down a bit.
The fact is that important external factors currently play a major role in the price of bitcoin. Both the stock and the crypto Markets react violently to every piece of news that comes out about the situation in Eastern Europe, as well as possible policy of the US central bank. It promises to be an interesting period.
Given the uncertainties that investors currently face, it feels less risky to be holding #bitcoin than any mix of currencies, credit, equity, commodities, or property.https://t.co/YTin2tjy2W
— Michael Saylor⚡️ (@saylor) February 11, 2022
Can’t think of any other asset I’d want to hold during times of geopolitical uncertainty than #Bitcoin
— Will Clemente (@WClementeIII) February 12, 2022
No one is going to risk nuclear Armageddon over Ukraine.
Just keep buying #bitcoineverything will be fine.
— Lark Davis (@TheCryptoLark) February 12, 2022
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