Bitcoin Holders Brace For Storm, Will BTC Break Through $44K Barrier?
February 14 2022 - 12:00PM
NEWSBTC
Bitcoin has been moving sideways during the past week with a 0.7%
profit as it trades at $42,709. The first crypto by market cap has
held on to critical support as it was rejected at the mid area of
its current levels. Related Reading | Ukrainian Defense Efforts
Bolstered By Crypto Donations Per a recent report from Bitbank’s
crypto analyst, Yuya Hasegawa Bitcoin has seen selling pressure
triggered by the possibility of a shift in monetary policy from the
U.S. Federal Reserve (FED). In addition, the crypto market could be
reacting to the rise in tensions around the Russia-Ukraine
situation. The Russian Federation has been making several bullish
announcements regarding cryptocurrencies, but as Hasegawa claims,
the country could be preparing to use digital assets in case the
situation escalates into a full-on conflict with Ukraine and a NATO
intervention. The analyst said: (…) this move may be a crafty
preparation to circumvent the possible financial sanction–like
exclusion from the SWIFT–that could be enforced once the country
starts to attack Ukraine. If this is the case, it could be bad
press for bitcoin and the crypto industry as a whole, and it might
spark a discussion to further regulate cross-border crypto payment.
In this scenario, Bitcoin could extend its gains as investors
acquire the cryptocurrency and precious metals to protect their
wealth. However, any profits could be short-lived if the
Russian-Ukraine situation impacts the U.S. stock market. Data from
Material Indicators shows that Bitcoin could see support around the
$41,000 area as $10 million in bids orders sit at those levels.
$40,500 could mitigate any downside in case previous levels fail
with $39,700 acting as the last line of defense against a return to
previous lows. To the upside, Bitcoin faces major resistance as
there are over $20 million in ask orders sitting at $44,000 alone.
These orders could prevent any future bullish momentum to gain
significant terrain, but they could also be operating as a
psychological barrier and could be removed if the market shows
strength. Bitcoin Investors De-Risk Their Positions A separate
report from Glassnode Insights concurs with Hasegawa’s thesis and
the fears about a potential conflict between Russia and Ukraine.
These uncertainties were priced-in by the derivatives sector with
the “futures term structure curve until March”. Bitcoin and crypto
investors are de-risking their positions in futures and have been
taking put options to hedge against any future downside. Glassnode
added: Simultaneously, on-chain supply dynamics are remarkably
stable, a likely indication that investors are prepared to ride out
whatever storm lies ahead, preferring to utilize derivatives to
hedge out risks. Overall, this speaks to the continuing maturation
of the Bitcoin market, as liquidity deepens, and more comprehensive
risk management instruments become available. Related Reading | TA:
Bitcoin Breaks Key Support, Why BTC Could Dive Below $40K The spot
sector and BTC on-chain inflows seem to be operating in favor of
the bulls and dismissing any fear around the Ukraine-Russia
situation.
NEO (COIN:NEOUSD)
Historical Stock Chart
From Feb 2024 to Mar 2024
NEO (COIN:NEOUSD)
Historical Stock Chart
From Mar 2023 to Mar 2024
Real-Time news about NEO (Cryptocurrency): 0 recent articles
More NEO News Articles