Market situation: Falling prices with rising tensions between Russia and Ukraine

As the risk of conflict between Russia and Ukraine on the border between the two countries increases, the situation on the world stock market and digital currencies has been declining since yesterday. In addition, many analysts believe that the downward pressure on the bitcoin market will continue for several months.

According to Kevin Desk, US President Joe Biden on Friday called on American citizens living in Ukraine to leave the country as soon as possible. Biden warned that a military conflict between Russia and Ukraine could break out at any moment. The US president has ruled out sending troops to Ukraine as Russia prepares to launch a possible conflict in Eastern Europe.

The price of bitcoin has fallen by 5% in the last 24 hours. Atrium and Solana fell by 4% and 7% respectively. Along with the fall in the price of digital currencies, the value of shares of companies operating in the stock market fell, while the price of gold and the US dollar rose on world markets. It is worth mentioning that the market situation has stabilized to some extent since the beginning of today.

The current state of technical indicators of bitcoin is largely neutral. The $ 40,000 to $ 35,000 range continues to act as support, and the $ 46,000 level continues to act as price resistance.

Jason Pagulatos, an analyst at Delphi Digital, said that in the last 10 days, most bitcoin transactions have ranged from $ 41,000 to $ 4,500.

“Delphi’s digital analyst says:

If support at this level ($ 41,000 to $ 41,500) is lost, the price will move to the levels where most trades have been made; The range is now $ 38,500.

Growing dominance of bitcoin in the digital currency market

Bitcoin’s dominance in the digital currency market reached over 40% this week. Traders usually make more money in the bitcoin market during the fall in digital currency prices; This is because investing in bitcoin is less risky than investing in bitcoin.

During the fall of the digital currency market in 2018, the bitcoin dominance rate increased from 35% to 72%. In 2021, as the altcoin market heats up, this percentage will gradually decrease by 30%.

Some analysts believe that the bitcoin market will be under pressure for several more months.

The New York Institute for Digital Investment (NYDIG) wrote in its report this week:

After the market collapsed last spring, it took about six months for bitcoin to recover. If the market recovery is to take the same amount this time, we will have to wait until May to reach previous prices.

Market situation: Falling prices with rising tensions between Russia and Ukraine
Graph of bitcoin absorption rate

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