Bitcoin is still trading to the downside despite being rejected by its price of $45,000 last Thursday. The cryptocurrency market is generally in a downtrend. Ethereum (ETH), Binance Coin, (BNB), XRP (ADA), Cardano, (ADA), and other coins have all suffered more than 10% losses during the past seven days.
Bitcoin Prices Bear The Brunt Of Long Liquidations And Geopolitical Tensions| Bitcoin Prices Bear The Brunt Of Long Liquidations And Geopolitical Tensions
Bitcoin currently trades at $37.638 and has suffered a 12% decline over the same period.
According to some benchmark cryptos, the cryptocurrency seems to have negative reactions to recent developments in Ukraine and Russia. Vladimir Putin, president of Russia’s Russian Federation, acknowledged yesterday that two regions in Ukraine were independent of leaders who had separatist tendencies.
This has heated up the situation with Russian sending in troops to “guarantee the security” of those territories. According to Yuya Hasegawa from crypto exchange BitBank, BTC’s price trends lower alongside the wider financial market.
Investors appear to be in a state of extreme risk-aversion, which is directly affecting cryptocurrencies and other risky assets. There might be some relief as the U.S. and Russia representatives could come to an agreement during this week, but it seems that the possibility of such an agreement is fading. Hasegawa said:
(…) with the gas pipeline explosion in eastern Ukraine last Friday, increased Russian military presence at the border, heavier financial sanction on Russia, and the U.S. PCE announcement coming up this Friday, there seems to be only little reason to take on any risks right now.
In the next days, an analyst will set Bitcoin’s price at $32,000-$43,000. Data from Material Indicators show a lot of resistance for BTC’s price around $40,000.
Below you can see that there are as high as $20,000,000 in asks orders, which may prevent bulls from taking these levels again in the near term. With $5 million worth of bids orders around this price, $36,000 might be a good support.
Can The Bitcoin Price Hold The Bears Back?
QCP Capital is recording “aggressive volume-selling” any time Bitcoin attempts to make a run to the upside. It coincides well with the significance of the Ukraine/Russia situation on global markets as well as the imminent increase in U.S. FED rates.
However, QCP Capital remains optimistic based on the drop in leverage long positions with BTC’s price current price action. The market has eliminated these positions without affecting funding rates for BTC Futures.
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Market participants have priced any potential future U.S. FED rate increases in their favor, QCP Capital stated. QCP Capital said the following on BTC’s price potential fate for the short-term:
It will likely be a more steady grind, with some short-squeezes if there are positive headlines. This would likely be countered by aggressive spot selling to cap the spot price spikes.