Bitcoin (BTC) is starting a new week in the shadow of the deepening geopolitical nightmare in Ukraine. While it is assumed that investors and those directly affected by the war are looking for a safe haven, this has not been Bitcoin or stablecoins in general. What can change jobs? cryptocoin.com This week, we present some factors to consider…
Macro forces point to a volatile, “challenging” week for Bitcoin
Historical precedent aside, it has become clear that the stock market “doesn’t like” the current European hostility. Losses soared last week, with global stocks losing a combined $2.9 trillion in value. For Mike McGlone, chief commodity strategist at Bloomberg Intelligence, Bitcoin’s intraday performance meant that the coming week should be really “hard” for risky assets.
“Bitcoin faces deflationary forces after 2021 extremes, but crypto shows different strength,” some wrote on Twitter. “With losses less than half of the Nasdaq 100 in 2002, BTC may be maturing towards global digital collateral,” McGlone said.
What does the CME gap indicate in BTC?
On Sunday, BTC/USD dropped to $37,592 on Bitstamp, marking its lowest levels since late February and completely wiping out subsequent gains. On Monday, trader Matthew Hyland warned that “Bitcoin has fallen below the critical support zone,” citing the various price levels in the range as support and resistance.
Around $39,600 – coincides with Friday’s closing price on CME Group’s Bitcoin futures market. Considering Bitcoin’s tendency to return to Friday’s closes next week, the area just below $40,000 could create focus on Monday and lay the groundwork for a support/resistance reversal should the bulls gain momentum. “Bitcoin’s big volatile moves, but will eventually rebound to the price of Friday evening’s CME close,” Michaël van de Poppe said. Joining McGlone, the analyst predicted that next week would be “volatile.”
Traders are preparing for CPI, interest rate hike is also observed
Officials in the US expect a rate hike from the Fed this month, and a decision will be made on March 16. The latest Consumer Price Index (CPI) data for the United States is expected before the Fed’s announcement. The CPI, which was already at its highest levels in 40 years, caused a sharp movement in the BTC price after the figures were announced last month.
What does the Fear and Greed index show?
As BTC/USD fell from the top of the range, the Crypto Fear and Greed Index returned to the “extreme fear” zone with it. A new loss seems to continue in the index, which doubled the normalized sentiment score to 51/100 after the rise in early March. Fear & Greed uses a number of factors to portray the crypto mood and suggests that there is room for more bearish at the moment as local market bottoms tend to be accompanied by a score of around 10/100.
“It’s a short-sighted market,” Van de Poppe said of the current situation. Popular trader Crypto Daan argued that in weak hands, even a drop to $20,000 would not constitute a major trend breach for Bitcoin long enough.
What’s the latest on Bitcoin hodlers?
There is a clear line between long-term and short-term BTC investors, and former BTC investors stubbornly continue to hold their BTC. An important metric that supports the view that confidence in Bitcoin is not matched by price was Reserve Risk. Currently, BTC/USD is returning to the green “buy” zone and this shows that conditions once again favor long-term investors – high confidence and low price.
Russia and Ukraine tensions continue to affect the markets, oil prices rise to the top
The tension between Russia and Ukraine continues to affect the market. Wheat prices have increased as Russia and Ukraine are one of the leaders in wheat production. Again, as an effect of Russian tension, oil prices saw their highest levels since 2018.
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