Bitcoin is trending lower and may retest previous lows over the weekend. Market cap: The market capitalization of the first cryptocurrency was at $40,000, and it was not able to sustain momentum.
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Bitcoin traded at $39,000. There was a 0.2% and 5.2% losses in the 7-day and last days.
Yuya Hasegawa, analyst for Bitbank, attributes BTC’s price recent price action to the Russia-Ukraine situation. Accordingly, an analyst for Bitbank expects some relief from the U.S. Secretary-of State Antony Blinken as well as Sergey Lavrov the Russian Minister in Foreign Affairs to schedule a call for next week.
This might help to reduce tensions at the border. On top of that, the analyst claims Bitcoin is sitting at “ample technical support” which could protect its price for further downside.
It is also a long weekend in America, which can cause volatility spikes due to the low volume of trading on the cryptocurrency market. Hasegawa said talking about BTC’s price immediate and medium-term potential headwinds:
The January U.S.PCE and February jobs report are available, as well as CPI data until March FOMC meetings. This means that even though the price may rebound from its current levels in the near term, any upside will likely be limited, unless there is some indication of Russian military retreat.
The macro-situation seems to occupy everyone’s attention. Material Indicators (MI), a separate analyst, claims that the Russia-Ukraine situation may change after the Winter Olympics. This event has been associated with similar crises in the past such as that of the Russian invasion in Crimea in 2014.
Bitcoin To See Short Squeeze Over Long Weekend?
Material Indicators provided further data suggesting that BTC might have entered the distribution phase. Reccomending traders to “avoid knife catching”, specially during periods of low volume, MI presented their Trend Precognition indicator which flashed a bearish arrow on the daily chart as BTC’s price trend below $40,000.
This could suggest the benchmark crypto might re-test its lows which could find good support, as MI claimed, “in areas of prior consolidation”. The levels between $35,000 to $38,000 were relevant during BTC’s price prior sell-off and could operate as support.
However, MI noted that there are “Liquidity gaps”, levels on the orderbook with low bids or asks orders, on both sides of the BTC/USDT trading pair. Bitcoin might see a quick squeeze either on the side or to its downside.
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There are currently around $10,000,000 in order at $39,500. There seems to be strong support for Bitcoin at these levels, which could help bulls at least temporarily.
