When Russian President Vladimir Putin delivered his speech on Monday evening and invaded Ukraine, bitcoin (BTC) all the way to $36,500. Fear and uncertainty rose sharply in the financial markets and was already very high. Bitcoin still shows more correlation with risky assets than gold.
Since then, things have reportedly remained relatively quiet in eastern Ukraine and bitcoin was able to recover somewhat yesterday. The bitcoin price is currently battling with the $38,000, a crucial level.
Bitcoin is sitting on the 4th biggest on-chain support/resistance of all time.
The battle of 38k. pic.twitter.com/nSs6BWb2mP
– Lex Moskovski 🐙 (@mskvsk) February 23, 2022
From bitcoin price briefly climbed above $38,000 by late yesterday afternoon, but was initially rejected there and slumped back to $37,500. Bitcoin then made another attempt up and this time tapped $38,250. Shortly after midnight, bitcoin touched $38,350.
Bitcoin then fell back to $37,700, but started rising steadily this morning. When bitcoin returned to $38,300, the price suddenly jumped sharply. Bitcoin was just rejected at $39,000 but it looks like the price will try again soon. Bitcoin price is at $38,850 at the time of writing Binance and €34,250 on Battle and is therefore 4.5% in the plus.
Crypto Market Fear Eavesdrops as Investors Hold their BTC Tight
It seems that bitcoin is gradually shaking off the fear and uncertainty. It may indicate that much of this fear has already been priced in in recent weeks. Despite this, further escalating developments in eastern Ukraine could still cause more panic and subsequently more selling pressure. There are also serious concerns about the Federal Reserve’s impending rate hikes.
Despite the fact that the fear is decreasing again, it is still high. The price does not plummet further as owners are holding onto their BTC tightly. The amount they own is even at an all-time high. For example, analyst TXMC reports that the amount of BTC held for at least 6 months is a all-time high (ATH) has reached 76.9%.
#Bitcoin supply held for at least 6 months has reached a new all-time high of 76.9%, surpassing the previous high set in October 2015. pic.twitter.com/fv8uu3uZph
— TXMC (@TXMCtrades) February 22, 2022
In addition, On-chain College reports that the number of addresses with at least 0.01 BTC has also reached an ATH. This was for no less than 9.5 million addresses.
The number of addresses holding at least 0.01 #Bitcoin just hit an all-time high at just under 9.5 million addresses.
On-chain analysis gives us front row seats to the adoption of the greatest invention in our lifetime. pic.twitter.com/g9vawDujkv
— On-Chain College (@OnChainCollege) February 23, 2022
However, there is still a lack of demand as to what is stopping the price from breaking out. Should new money finally flow in, the FOMO could become a so-called supply shock which may cause the price to rise rapidly. For now, according to Whalemap and Matthew Hyland, the following prices are important to keep an eye on, because there is a lot of resistance and support here.
Areas of whale interest are very well defined now.
34k awaits below 36-37k
Macro trend reversal above $48,500
Picture below includes everything one should know about current important supports and resistances pic.twitter.com/yx38hpfY9a
— whalemap (@whale_map) February 22, 2022
Keeping it simple, here are all of the significant support and resistance price levels for #Bitcoin that I have been discussing over the past few weeks
I condensed them into one chart and I will continue releasing updates no matter what direction the price goes: pic.twitter.com/O783PMybSZ
— Matthew Hyland (@MatthewHyland_) February 23, 2022
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