Bitcoin fell 4% on Tuesday, briefly touching its lowest level in one month.
Escalating tensions between Russia and Ukraine have deteriorated sentiment towards the cryptocurrency market.
The Bitcoin Fear and Greed Index – a popular measure of investor sentiment – indicated the prevalence of intense fear.
Recent reports said that Russian President Vladimir Putin has ordered the armed forces to enter separatist regions in eastern Ukraine.
Bitcoin has fallen nearly 20% to $37,000, from its highs earlier this month.
And what added to the fear of investors and traders, was the recent statement by the CEO of “Huobi”, where he told that Bitcoin is about to enter a bear market and that it will not recover until the end of 2024.
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Bitcoin’s plunge to low levels made many technical analysts expect the worst, as the Twitter analyst nicknamed “CredibleCrypto” stated:
There are two different ways I can see this happen but I would like to see more (price action) develop at the moment.
The big picture is that the weekly support is at $32-34K, and I still don’t think 28K will be broken.
Invalidation pretty much hit at this point- time to reassess. There are a couple of different ways I can see this playing out but want to see some more PA develop for now. Big picture- weekly support at 32-34k, still don’t think 28k will be breached, will know more in a few days. pic.twitter.com/TQmp6nnJqa
— Credible Crypto (@CredibleCrypto) February 22, 2022
The world’s largest cryptocurrency wasn’t the only one to suffer losses.
The price of Ethereum fell to its lowest level in three weeks, while Ripple and Cardano fell by 13% each.
As a result, the total market capitalization of cryptocurrencies decreased by 7% in the past 24 hours to $1.72 trillion.
Global stock markets also declined, while the dollar strengthened its position as a result of the demand for it and considering it as a safe haven.
The Fed’s optimistic outlook this year, combined with rising inflation, has dampened expectations and appetite for risk-driven assets.
The stablecoin has seen the highest trading volumes among its peers, and Tether has been in the lead over the past 24 hours.
Gold and US Treasuries were also favored this month.
Is there still some hope?
Not all market participants are heading to the downside, but there are optimistic parties who see the recent decline as just a correction.
The analyst nicknamed “Plan B” sees Bitcoin’s 200-week moving average indicating an uptrend, and that it will exceed the current volatility.
Analysts also said that the currency could rebound sharply as the relatively low price attracts more buyers.
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