Bitcoin (BTC) Dips Below $40,000 Over Ukraine And Possibility Of Fed Rate Hike


Bitcoin fell below $40K on Monday, while other cryptocurrencies saw losses, according to Coingecko data.

BTC is trading near two levels of long-term support but no bullish reversal signs have emerged yet.

This comes at a time when investors remain concerned about the situation in Ukraine and the possibility of a US central bank rate hike.

The global cryptocurrency market capitalization is $1.80 trillion, down 2.04 percent from the day before. The total volume of the crypto market over the past 24 hours increased by 20.13% to $65.06 billion.

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The 50-day and 100-day moving average lines crossed higher last week; However, Bitcoin was not able to sustain the bullish momentum and experienced a jolt in the price.

Later in the week, the price recovered and tried to break above the moving average lines again, but it was quickly rejected and dropped below the $40,000 level.

Bitcoin selling pressure

During the week of April 18-24, bitcoin prices fell slightly. While the week started with an upward advance that resulted in a local high of $42976, the price declined in the latter part of the week, leading to an extension of the upper wick (red icon). This is interpreted as an indication of selling pressure.

BTC is currently trading well below the $42,000 mark. This is a long-term critical level that has served as support and resistance intermittently since May 2021.

BTC total market cap at $731.41 billion on the daily chart | Source: TradingView.com

“Bitcoin and the majority of cryptocurrencies declined over the weekend as a result of the heightened tensions in Ukraine on one hand and the US Federal Reserve’s views on rising interest rates due to inflation on the other,” Idol Patel, CEO and Co-Founder of Mudrex, explained.

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BTC Expected to Lose Its Bullish Momentum

The support level for Bitcoin is currently at $37,000 and the resistance level at $46,000. According to Patel, crypto investors may see the two major cryptocurrencies, BTC and ETH, losing their bullish momentum. ETH is down 3% and has traded below $3,000 since Friday.

“If BTC drops below $35,000, the next big support level will be $30,000. In the following days, we may see range-bound trading,” Patel said.

Meanwhile, the $42,000 support level for BTC turned into a major resistance in the shorter time-frames after the price failed to break above it.

At the $42,000 level, selling pressure was evident, leading to a sharp drop to the $39,000 area, which is currently being tested.

Featured image from Newsweek, chart from TradingView.com



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