On Friday, major cryptocurrencies fell as traders responded to geopolitical worries originating from Russia and Ukraine. US Vice President Joe Biden encouraged Americans to leave Ukraine right now, saying that “an invasion may begin at any minute.” Despite Russia’s military operations, the US has ruled out deploying soldiers into Ukraine for the time being.
The price of Bitcoin fell by up to 5% in the last 24 hours, while Ethereum fell by 4%. Stocks fell as well, but gold and the US dollar surged as traditional safe-havens. Later in the New York trading day, markets returned to normalcy.
Bitcoin (BTC)- has been highly volatile in recent weeks. The ongoing rally reached $45,000, representing a 38 % spike from the low of $33,177. The Bitcoin (BTC) price, on the other hand, has initially been rejected from the overhead resistance, showing that the bears are active at this level. To put the investors’ dedication to the test, the coin price might tumble to $40,000 support.
BTC price had a strong breakthrough on February 4th from a convergence of technical levels, including the $40,000 psychological level, declining trendline, and 20-day EMA. The prolonged buying elevated the price by 13%, pushing it to $45,000. Meanwhile, the bears defended this barrier, resulting in a slight market drop. The current BTC price is $42,564, suggesting a 7.2 % drop from the overhead barrier. The coin price is decreasing as it hits the shared support of $40,000 and the 20 EMA.
A bounce off of this key support level would show that bulls are grabbing the drop and will try to push the price above $45,000 once again. Alternatively, if sellers drove the price below $40,000, the price would fall to $36,721 or $33,177. The dynamic resistance of the 20-day EMA has been changed into possible support as a result of the latest price increase. Near the $45,000 area, buyers will most probably bump into the trend-defining 200 EMA, which will act as a fundamental barrier for recovery.
Also, the fact that the RSI(55) slope is above the 14-SMA and the neutral line indicates that the buyers gain the upper hand.
Ethereum (ETH)- returned to a high of $3,280. This movement broke through the psychological barrier of $3,000 as well as a long approaching downward trendline. Therefore, if there is adequate demand, the Ethereum price will revert to these levels.
On February 9th, Ethereum’s price penetrated the extremely powerful descending trendline, among the current recovery in the cryptocurrency market. The breakout brought the cryptocurrency to $3,287, a 51% increase from the previous swing low of $2,330.
The price of Ethereum has spent the previous three days retesting the declining trendline. The currency is presently trading above the common support of $3,000-$2,900 and has crossed the trendline in search of a room in the market. The price of ETH remains negative as it trades below the 100 and 200 DMAs. In opposition, long traders benefit from the freshly flipped 20 DMA curving higher. The slope of the daily-Relative Strength index(49) is wavy around the midline, suggesting a neutral sentiment.
The importance of the $2900 support zone is emphasized by the rising trendline. If the price of Ethereum recovers from this support, buyers will face the overhead barrier of $3400, followed by the next obstacle of $3,600. In contrast to the bullish presumption, if sellers dump the cryptocurrency below the base support, it will imply that bears are selling on rises, and the ETH price will fall below $2,650 or $2,330.
The MACD and signal have lately slipped below the neutral zone, according to the moving average convergence/divergence indicator. Instead, if the bears were unable to maintain their deflationary pressure, leading to fading red bars on the chart.
Are you ready to dive into cryptocurrencies?
MX Global– Built in Malaysia for Malaysians
Legal Risk Disclosure:
Trading on cryptocurrency carries a high level of risk, and may not be suitable for all investors.
The high degree of leverage can work against you as well as for you. Before deciding to trade with MX Global, you should carefully consider your investment objectives, level of experience, and risk appetite.
The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
You should be aware of all the risks associated with cryptocurrency trading, and seek advice from an independent financial advisor.
Any opinions, news, research, analyses, prices, or other information discussed in this presentation or linked to from this presentation are provided as general market commentary and do not constitute investment advice.
MX Global Team does not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.