Bitcoin (BTC) saw its first drop below $38,000 in over two weeks on Feb. 20, as macro triggers rattled low-volume weekend markets.
Trader on BTC: “Nothing to get excited about”
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair losing ground on Sunday, following threats of further sanctions on Russia over its alleged plans to invade neighboring Ukraine.
After a quiet Saturday, Cryptocurrencies started to move downhill after UK Prime Minister Boris Johnson’s comments about financial blockades of Russian companies should the situation escalate.
These would be prohibited from “trading in pounds and dollars,” reported the BBC where Johnson spoke on Sunday morning, alluding to the support of United States President Joe Biden.
With cryptocurrencies being the only markets constantly open, the reaction to geopolitical fears in the region could herald a bigger knock-on effect next week as traditional markets open up. Monday is a holiday on Wall Street.
commenting on the situation, Mike McGlone, chief commodity strategist at Bloomberg Intelligence, He emphasized the current problem of inflation and its relationship with the performance of risk assets.
However, in line with previous comments, he suggested that Bitcoin could ultimately benefit from the sea of changes in US economic policy this year.
“Bitcoin Signals Tough Week Ahead: Inflation Unlikely To Fall Unless Risky Assets Do: Most Assets Subject To Ebb Tide In 2022, In Inevitable Reversal Of Higher Inflation Measures in four decades, but this year may mark another milestone for Bitcoin,” he argued.
Among Bitcoin traders, the short timeframes were now similarly lackluster, with the loss of the $40,000 level weighing on sentiment.
Now also failing to hold any support. I can see us retesting 40K within the next few days as we’re at support on LTF but generally the HTF isn’t something to get excited about until we retake some important levels.
— Daan Crypto Trades (@DaanCrypto) February 20, 2022
Now also failing to hold any support. I can see us retesting 40K in the next couple of days as we are in support at LTF but overall HTF is not something to get excited about until we retake some important levels.
The BTC/USD pair saw lows of $37,974 on Bitstamp on Sunday before recovering to hold above the $38,000 mark.
Extreme fear rises from the dead
Meanwhile, others continued to focus on the importance of $40,000 in Bitcoin’s price history.
Since it was first cracked in 2021, the level has acted as a springboard for bulls, and for the popular Mayne Twitter account, a rally should be their first move to lock in the upside.
“Over the last year, $40,000 has been a very critical level for BTC. Every time the price has broken below and then recovered, we have seen a big breakout to the upside. Probably a good area to watch right now.” , commented on Sunday. .
In the meantime, however, it seemed that what the masses were expecting were new losses. The Crypto Fear & Greed Index was back in “fear” territory on the day, having seen a drop of over 50% in just four days, after briefly entering “extreme fear”.
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