A dark week for macro markets, the weekend provided some respite for crypto trades. According to crypto analyst William Suberg, Bitcoin (BTC) faced a $40,000 drop on Feb. 27 as hopes of a weekly close depend on avoiding a fourth consecutive monthly red candle.
Bitcoin (BTC) has little time to break the streak
The analyst states that BTC made several attempts to break out of the $30,000-40,000 corridor on Sunday, all of which resulted in rejection. According to the analyst, Bitcoin remained generally high throughout the weekend, giving traders some relief after a week of volatility in geopolitical and media headlines.
The analyst now states that $38,500 is the level to watch for Bitcoin to close the week and the month, and if it doesn’t, it will mean the fourth straight monthly red candle. Another crypto analyst, Matthew Hyland, points out the following levels:
Bitcoin has less than 36 hours to close above $38.5k to break this series and avoid 4 flat red monthly candles.
“This means a short to medium term bottom for Bitcoin”
As we reported on Kriptokoin.com, despite the downward move in the Ukrainian occupation, the bulls broke out of a lower low last week and bottomed out at $34,300 compared to $32,800 in January. Popular trader and analyst Pentoshi comments, “Cautious optimism, this is a short to medium-term bottom for BTC” and explains:
I pulled my 40.3k order (not great) and 41.6k for hedging I’ll focus on the bin higher. It’s a flip side and there’s a pretty good flip side to it. I’m still wary of the macro landscape imo being anything but bullish.
This macro landscape looks poised to present a new wave of uncertainty at Monday’s opening, thanks to the West’s moves to cut Russian banks from off-shore liquidity and the SWIFT payment system. President Vladimir Putin’s talk of Russia’s nuclear deterrence also brought goosebumps over the weekend, and Ukraine and Russia began talks on the Belarusian border on Sunday.
Will Russia’s expulsion from SWIFT affect cryptocurrencies?
Meanwhile, for Bitcoin advocates, the potential knock-on effect of Russian financial sanctions and the cryptocurrency’s status as a neutral network for value transfer have begun to take center stage. Crypto analyst Jason Lowery says:
What does it mean for USD & SWIFT if both sides of the conflict prefer Bitcoin for its superior features? Answer: This means that it is better for all countries and institutions to buy as much Bitcoin as they can now, b4 financial platforms become obsolete.
Former Coinbase CTO Balaji Srinivasan on central bank asset freeze “Still processing results,” he wrote as part of a Twitter response.
This is a financial neutron bomb. It bankrupts people without blowing up buildings. It hits all 145 million Russians, every ruble owner at the same time. In a maximalist scenario, the possible collapse of the Russian economy.
Ukraine has started accepting donations for its military in Bitcoin, Ethereum (ETH) and Tether (USDT). Their wallets have received 91 BTC ($3.57 million) at the time of writing, as well as 1,797 ETH ($5.02 million) and $1 million in USDT.
Weekend remains ‘boring’ for crypto
However, for crypto markets in general, sentiment is in ‘wait and see’ mode, according to William Suberg There were very few opportunities to stay. None of the top ten cryptocurrencies by market cap have managed any notable up or down movement in the past 24 hours.
ETH traded around $2,800 and weekly gains were still close to 6%. The current situation is summed up by the famous Michaël van de Poppe, “Pretty boring market movements over the weekend, and that’s not strange,” summed up:
A very hectic and volatile week is approaching, probably with the war in Ukraine. Don’t chew your positions, just play slowly. The sentiment and momentum can change rapidly due to these political events.
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