What many investors have been fearing for weeks now seems to be happening. Russia continues its invasion plans, creating much fear and uncertainty in most financial markets, including bitcoin (BTC)† This mounting fear has already caused a significant drop in recent times and again in the past 24 hours. However, more volatility can also be expected in the near future.
Bitcoin Fear and Greed Index is 20 ~ Extreme Fear
Current price: $37,017 pic.twitter.com/UrSK9juBkP— Bitcoin Fear and Greed Index (@BitcoinFear) February 22, 2022
Bitcoin price drops by 5%
From bitcoin price began to recover from last week’s decline on Sunday night. It wasn’t convincing, though bounce who made the course. Bitcoin rose to $39,400 yesterday morning, but the recovery then quickly came to an end. The Chinese stock markets turned red and huge technology companies like Tencent were falling sharply.
Subsequently, bitcoin also began to fall rapidly. The price then found support again around $38,350, but this level also quickly collapsed and bitcoin then plummeted to $37,500. This time, bitcoin did make a significant bounce and the price briefly crossed $39,000 again. With the emphasis on a moment, because in the evening the price started to fall again.
Russian President Putin gave a speech and recognized two areas in eastern Ukraine as independent. Putin then sent massive military vehicles across the border under the guise of a “peace mission.” The Russian ruble plummeted and stock markets also fell, especially risky assets with which bitcoin still has a high correlation. Gold, on the other hand, is rising.
Fears spilled over to crypto again, and bitcoin then plummeted to $37,800. So that was initially less deep than the first dip and bitcoin was then able to recover slightly to $38,350. But then bitcoin started to fall again. That decline was, incidentally, again accompanied by a large waterfall of liquidations of overleveraged long positions
Bitcoin hit $36,500 last night, its lowest price since early February. Since then, the price has been able to recover very cautiously and at the time of writing it stands at $37,300 Binance and €32,950 on Battle† Despite this, bitcoin is currently 5% in the minus.
Fear very high, more volatility predicted
The financial markets are deeply concerned that this is only the first step of Putin’s invasion plans. These plans could lead to severe economic sanctions that could wreak havoc on risky assets. That ensures that the fear remains very high and the bitcoin price will probably remain volatile for the foreseeable future.
Traded macro dislocations for decades, including on a WS desk in 1990s turmoil. Lessons for BTC:
-Price can go lower than you think
-Zoom WAY out
-No leverage
-Rationally-sized positions. No rent money.Long-term backdrop for BTC getting even more favorable. Watching to add.
— MacroScope (@MacroScope17) February 21, 2022
In addition, some indicators are now starting more bearish to give signals. Despite this, many analysts remain bullish over the long term. Still, more and more analysts are of the opinion that bitcoin needs to make a big bounce quickly to prevent much worse.
#Bitcoin 3-Day MACD Bearish Cross looming: pic.twitter.com/zd1v0iVWlt
— Matthew Hyland (@MatthewHyland_) February 22, 2022
#Bitcoin is flashing warning indicators that we rarely see & I feel it’s important to share.
TLDR – In my opinion, $ BTC needs a bounce soon or there’s the chance of a capitulation event ahead.
It might be the spark that ignites the final run.See thread & notes. 🧵👇 1/10 pic.twitter.com/UDc6HMagnN
– ₿lake (@blaakke) February 21, 2022
Currently, the market is still driven by investors holding their BTC tight on the one hand, but a lack of demand and new money on the other. Due to the current uncertain situation, this will probably continue to be the case. Still, analysts expect bitcoin to potentially rise again after that.
Again so much drama around $ BTC.
Bitcoin is in a beautiful accumulation range, which could last for another 2 weeks and after that we can expect a new impulse up 💯 pic.twitter.com/B3Yq03Undi
— Bloodgood (@bloodgoodBTC) February 21, 2022
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