Bitcoin has been behaving like a risky asset for weeks and its reaction to the latest escalation of the conflict on the Ukrainian border confirmed that it is far from being a haven asset. Russian President Vladimir Putin ordered the Russian Armed Forces to enter the Donetsk and Lugansk regions, whose independence Russia recognized on Monday.
Although the digital currency had held up during the last month of tensions, recent events eventually scared away short-term investors and the critical support at $40,000 was lost. “Now, the challenge for the queen of cryptos will be to hold the support of $36,670, an interesting area that served as support for the rebound generated a few days ago,” IG analysts point out.
However, pessimism seizes the experts as the digital currency suffered sharp declines after unsuccessfully facing the resistance of $45,000 and there are not a few who believe that $30,000 is coming back in. in Game. However, “on the support side, the most important of all of them is at the lows of January at US$32,855,” warns José María Rodríguez, an analyst at Bolsamanía.
“Geopolitics, for now, has replaced inflation as the main driver of traditional markets and cryptocurrencies”, says Antoni Trenchev, co-founder and managing partner of Nexo, quoted by ‘Livemint.com’. Trenchev sees last summer’s lows of around $29,000 as a “last line in the sand” but expects bitcoin to hold at $30,000, with significant buying interest at that level.
Katie Stockton, founder of Fairlead Strategies, warns, for her part, that technical analysis is not in favor of bitcoin either. The token, which has already eroded the aforementioned long-term support level at around $37,600, would face its next key technical test at $27,200.points out this expert.
Source: Ambito
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