Bitcoin’s price increased momentum early Monday, breaking through the 38,500 barrier zone, but mostly wobbled after Russian President Vladimir Putin’s nuclear deterrence alert announcement.
The cryptocurrency attempted an upside run beyond $39,500 and $40,000 but corrected down on Sunday as Russian President Vladimir Putin increased the alert level on his country’s nuclear deterrence in the face of new Western sanctions for assaulting Ukraine.
Bitcoin closed the week at $37.704. Following a drop of 0.27% on Saturday, it fell 3.65%.
It was also a dark session for major cryptocurrency holders.
AVAX dropped 8.07% and LUNA fell 7.30%.
ETH lost 5.84%, SOL weakened at 5.12%, ADA declined 3.48, BNB fell 3.65%, and XRP dropped 3.92%
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BTC saw a strong upward movement and was sold at $39,500 as well as $40,000 levels.
BTC began a decline and is now trading at $38,290.
This new peak has been established above the $37.500 support zone.
Next critical support level for Bitcoin is close to $37200. Below that, BTC might fall as low as $36,500.
The daily market capitalization of crypto assets is $1.701 trillion | Source: TradingView.com
The Nuclear Deterrence Causes Cryptocurrencies to Fall
The news of Russia’s nuclear forces being placed on “special alert” and the West’s synchronized response impacted market confidence.
The European Union responded by announcing that it would finance the “purchasing and supply of weapons” and other gear to a country “under assault.”
The Russian government also shut down airspace for all Russian aircraft, as well as the Russian state-owned television channel Russia Today and Sputnik.
BTC seems to be stabilizing over the $38,500/$38,800 resistance levels. The cryptocurrency could reach the $40,000 threshold if it reaches $38,800.
Bitcoin needs to break the $38,202 pivot level in order for it to challenge the $39,360 first major resistance level.
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BTC Requires Broad Market Support
Bitcoin – the world’s most desired digital asset – would require broad market support to break through the $39,000 barrier.
Russia’s invasion of Ukraine will remain the main focus.
Any further escalation by Russia or the West would put Bitcoin and the larger crypto market’s backing to the test.
Apart from the news, US President Joe Biden’s State of the Union Address on Monday night and Federal Reserve Chairman Powell’s Testimony on Wednesday and Thursday is also expected to weigh down on the broader market sentiment.
Meanwhile, on the regulatory front, we’re keeping an eye on the White House Executive Order on cryptocurrency and the EU’s Markets in Crypto Assets launch.
Parliamentarians are currently considering MICA, a regulatory framework that would regulate digital assets.
Featured Image from Deccan Herald. Chart from TradingView.com