In turn, the Ukrainian Parliament last Thursday approved a law to legalize Bitcoin and other digital currencies, also opening the “doors” to cryptocurrency trading platforms. In addition, the Russian Ministry of Economic Development also proposed last week to cut taxes on Bitcoin mining activities throughout the territory of Russia, a situation that can be seen as positive in the market.
Bitcoin (BTC), the main cryptocurrency, is trading close to $40,000 after losing just over 13% from the highs of February. Now, the challenge for BTC will be to hold the support of $36,670, an interesting area that served as support for the rebound generated a few days ago.
Ethereum (ETH) is trading above $2,700, down just over 15% from the February highs, once the market rejected the $3,300 resistance. For now, if we continue to have some “strength” in price, we are likely to see an approach to the psychological $3,000 level.
The future of Bitcoin this week
The big question at the moment is whether BTC will continue to fall to lower levels after breaking below $40,000. In principle, it seems that if the conflict escalates, the markets are ready to continue falling.
“Bitcoin Signals Tough Week Ahead: Inflation Unlikely To Fall Unless Risky Assets Do: Most Assets Subject To Ebb Tide In 2022, In Inevitable Reversal Of Higher Inflation Measures in four decades, but this year may mark another milestone for Bitcoin,” said Mike McGlone, chief commodity strategist at Bloomberg Intelligence.
“Over the last year, $40,000 has been a very critical level for BTC. Every time the price has broken below and then recovered, we have seen a big breakout to the upside. Probably a good area to watch in this moment”, commented this Sunday.
The Crypto Fear & Greed Index was back in “fear” territory that day, having seen a drop of more than 50% in just four days, after briefly entering “extreme fear”. Analyst and YouTuber Juan Rodríguez, known on social media as Juan Biter, sees a visit to $37,000 for the price of bitcoin on the horizon. This, in case there is a break of the 40 thousand to the downside.
A much more solid support in the eyes of the analyst is between 30 and 37 thousand dollars, precisely. This range is the average purchase price of some of the largest institutional factors, such as MicroStrategy, Tesla or Square.
Even around 45% of the bitcoins currently in circulation were bought above 30 thousand dollars. This includes a lot of whales (addresses with at least a thousand BTC), so that level looks very solid for the foreseeable future.
Source: Ambito
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