Market situation: Prices are rising again as tensions between Russia and Ukraine ease



Many digital currencies have jumped since yesterday as tensions between Russia and Ukraine eased and the risk of conflict between the two countries eased.

According to Kevin Desk, Russian President Vladimir Putin announced at a press conference yesterday that he was ready to work more closely with the West to resolve tensions over Ukraine. The move by the Russian government was accompanied by the withdrawal of Russian troops from the border with Ukraine.

Following the news, stock market prices and digital currencies rose as assets such as gold and the dollar depreciated on world markets. Most of yesterday’s jumps were related to market quinces; This shows an increase in the willingness of investors to take more risks. Atrium jumped 8% yesterday, and the bitcoin market rose 4%.

Despite rising prices, the volume of trade in the immediate markets of bitcoin still seems low compared to the jumps of 4 and 10 February (15 and 21 February). As some technical indicators show, low trading volume could limit the recent jump to a point between $ 46,000 and $ 50,000.

As can be seen in the chart below, the overall trend in bitcoin trading volume has been declining over the last few months.

The Arcane Research Institute wrote in its report yesterday:

Traders are currently in a precarious position, as evidenced by the ever-changing market sentiment between fear and greed, as well as the volatility of the bitcoin price between $ 42,000 support and $ 46,000 resistance. If bitcoin continues to leave this area, we will probably see an increase in trading activity.

In the last 24 hours, the volume of orders for sale on the bitcoin futures market has outpaced purchase orders, indicating an increase in short-term sales pressure.

Standing futures contracts are one of the products for trading derivatives on the financial markets and their main difference from ordinary futures contracts is that they do not have an expiration date.

Market situation: Prices are rising again as tensions between Russia and Ukraine ease
Diagram of changes in the volume of bitcoin trading in digital currency exchanges

Lawrence Lewitin, co-author of the Kevin Desk website, previously wrote:

Over the past year, the share of trading volume in the total market value for many major currencies has been declining from month to month. The result of these changes is that less capital is likely to be needed in the future to mobilize the market.

Reduce upward emotions

A few days ago, under the influence of traders’ reaction to macroeconomic factors and tensions between Russia and Ukraine on the border between the two countries, the Bitcoin index of fear and greed re-entered the “fear” zone. The current level of 46 is assessed as neutral, which means that it has not affected investors with specific sentiments up or down.

The bitcoin index of fear and greed can fluctuate between the defined floor and peak for several months; Just like the decline in 2018, when the emotions of traders were constantly changing. The rapid change in emotions can be a sign that short-term trading opportunities are emerging for both buyers and sellers. Those who adhere to their trading positions are also likely to use less variable analytical tools such as market cycles and trends.

On the other hand, some technical indicators show a weak long-term price trend; A problem that can limit the possible jump of bitcoin.

Market situation: Prices are rising again as tensions between Russia and Ukraine ease
Bitcoin index of fear and greed

Over the past month, however, traders’ sentiment has also improved as market pressures have eased.

Stable Coin Ratio (SSR) is a tool that can be used to determine if there is liquidity (stable coins) needed to increase market pressure. This index actually compares the stable value of coins in the market cycle with the total market value of bitcoins.

The state of the stable coin supply ratio index seems to be positive recently; Just like the months of July (July) and October (October), which showed positive signs in this index.

Market situation: Prices are rising again as tensions between Russia and Ukraine ease
Comparison of bitcoin prices and the index of stable supply of coins

Post-market situation: Prices are rising again as tensions between Russia and Ukraine ease. Appeared first in digital currency.

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