Bitcoin (BTC) rallied to $38,000 when Wall Street opened on Feb. 22 amid a tense environment over geopolitical instability.
Bitcoin tiptoes around signs macro
Data from Cointelegraph Markets Pro and TradingView showed an eerily quiet start to the first Wall Street session of the week for both stocks and cryptocurrencies.
Fears were high of a dramatic bout of volatility accompanying the open thanks to the February 22 announcement by Russian President Vladimir Putin., that it would recognize two breakaway republics in eastern Ukraine.
It was also assumed that the sanctions, which were still being announced at the time of writing, were about to stoke the fire, but there was little movement on the day.
The S&P 500 was virtually flat thirty minutes after trading began, leaving Russian markets the biggest losers and gold the notable winner.
“I think we’re going to open in the red and then immediately bounce into risky assets and have a slight correction in gold,” forecast formerly Cointelegraph contributor Michaël van de Poppe.
In the meantime, trader and analyst Scott Melker turned his attention to the potential for the Russia-Ukraine debacle to influence US Federal Reserve policy.
According to banking giant JPMorgan, the effect of a possible conflict could cause the Fed to abandon the veracity of its planned interest rate increases for this year.
LOL
So war potentially means more stimulus and printing = good for assets.
Got it. https://t.co/giYBSc9U6v
— The Wolf Of All Streets (@scottmelker) February 22, 2022
LOL
So war potentially means more stimulus and impression = good for assets.
I understand.
According to a note published on February 22 cited by several media outlets, JPMorgan analysts believe that the trigger for a Fed rethink would come in the form of increases in commodity prices.
“Russia-Ukraine tension is a downside risk to corporate America, but an energy price shock amid an aggressive central bank pivot focused on inflation could further dent investor confidence and growth prospects”they wrote.
Meanwhile, sanctions were held in check over an all-out economic retaliation, with Russia’s two largest state-owned banks, Sberbank and VTB, left untouched.
Traders Interpret Bitcoin’s Recovery Step by Step
Meanwhile, looking ahead to Bitcoin, popular trader Anbessa avoided calm as the BTC/USD pair met expectations without a significant trend violation.
A potential support/resistance flip near $37,700 was on the cards, he said, and this is expected to become a major feature for the higher timeframe chart in the future.
If you expect the HTF S/R flip u don’t care how high #BTC pumps short term.
Patience is a virtue. Today #BTC followed the projection after hitting $45.8k and while your Guru panics, you have to know throwbacks are healthy.
Just waiting for confirmation now or SL hits. https://t.co/3abE4jaZLu pic.twitter.com/gFIr7G8FSZ
— AN₿ESSA (@Anbessa100) February 22, 2022
If you expect HTF S/R to change, you don’t care how high #BTC pumps in the short term.
Patience is a virtue. Today, #BTC followed the projection after reaching $45,800 and while your Guru is panicking, he should know that pullbacks are healthy.
Waiting for confirmation now or for the SL to be reached.
However, as Cointelegraph reported, Bitcoin and altcoins remain under the radar for most mainstream consumers, with most high-volume institutional players and whales holding a significant stake.
“Yes we are bleeding new users but we still have a lot of dilution and retail exits. No recovery. Maybe for BTC. But not much more on the risk curve”, added Trader Pentoshi in his own discussion of the macro environment.
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