The majority of cryptocurrencies fell on Friday as traders reacted to geopolitical dangers posed by Russia and Ukraine, with Bitcoin falling below $43,000.
The cryptocurrency market began to fall on Friday, but the sell-off peaked early on Saturday as investors digested a slew of macro news items that could have a global impact.
Why the downturn?
The most current concern is growing tensions between Russia and Ukraine, which could prompt the Federal Reserve to convene an emergency meeting on Monday.
President Biden of the United States has urged Americans to leave Ukraine as soon as possible, warning that “an invasion might commence at any time.” Despite Russia’s military activities, the US has ruled out sending soldiers into Ukraine for the time being.
Bitcoin (BTC) has declined by as much as 8% in the last 48 hours, compared to a 12% decline in ETH and a 15% drop in SOL. Stocks fell as well, but conventional safe havens like gold and the US currency climbed. Later in the New York trading day, the markets ultimately stabilized.
So, what comes next?
The bright forecast for Bitcoin price has been projected as BTC has continued to set new highs. However, as the bulls recover their breath before continuing the uptrend, the leading cryptocurrency may sink lower to retest crucial support levels.
Bitcoin’s technical indications are mainly neutral, with support near $35,000-$40,000 and resistance near $46,000.
The market dynamics are always changing, and here are a few scenarios that the market could follow in the coming days.
- The price of bitcoin may continue to drop as the world’s most popular cryptocurrency seeks stable support.
- The current chart pattern predicts that BTC will continue to rise after the pullback is complete.
- Bitcoin may plummet near the strongest line of defense at $40,000 before confirming next directional plans.