Bitcoin (BTC) began a heavy weekend around $39,000 on Feb. 26 after an overnight peak briefly saw $40,000 in gains.
BTC/USD 1-hour light chart (bit-mark). Source: Trading View
Stocks are rising, but the “fear” of cryptocurrency is growing
Data from Cointelegraph Markets Pro and TradingView showed calmer conditions for BTC/USD on Saturday after overnight volatility on Bitstamp peaked at $40,330.
When traditional markets are closed, the likelihood of “fake” moves up or down has increased due to lower trading volumes in the cryptocurrency markets over the weekend.
Geopolitical turmoil around occupied Ukraine and Russia has created a backdrop for continued cautious sentiment amid fears that Monday, in particular, could lead to new instability.
While the Crypto Fear & Greed Index rose over the weekend, it remained in the lower “fear” territory at 26/100.
Crypto Fear & Greed Index (screenshot). Source: Alternative.me
Meanwhile, a potential silver lining for Bitcoin bulls has emerged on the weekly chart. After a recent drop of $34,300 due to the invasion of Ukraine, BTC managed to reach an even lower low compared to the $32,800 drop in January.
Trader and analyst Rekt Capital said if this continues, February’s $45,500 drop is likely to prove to be a “necessary” consolidation move.
Meanwhile, macro markets ended the week with a significant increase in both European and US indices.
The US dollar, which strengthened when the fighting began, returned to most of the rally, with the US dollar index (DXY) returning to 96.5 from a high of 97.7.
Hourly chart of the US dollar index (DXY). Source: Trading View
LUNA Tops the Top 10 Cryptocurrencies
Altcoins provided a mixed but still strong overall picture on Saturday as the big coin led by Terra (LUNA) surged nearly 50% in one week.
Related: Price Analysis 2/25: BTC, ETH, BNB, XRP, ADA, SOL, AVAX, LUNA, DOGE, DOT
As bitcoin cools, some of the late gains have continued, including XRP, which is up 10.3% in the 24 hours to time of writing.
Ether (ETH), the largest altcoin by market capitalization, traded above $2,750 daily, gaining 5.6% after trying to challenge $2,900 overnight.