Bitcoin (BTC) faced a $40,000 drop on February 27 as the weekly industry’s hopes of avoiding a fourth consecutive red month were halted.
BTC/USD hourly candlestick chart (bit mark). Source: Trading View
Tensions escalate to open TradFi markets
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD made several attempts to break out of the $30K-$40K trajectory on Sunday, all of which ended in failure.
The pair remained largely higher over the weekend, pushing traders back after a volatile week at the hands of political and media headlines.
Now the $38,500 level has been in sight for bitcoin at the end of the week and month – if you don’t, that would mean a fourth straight month of red light.
As Cointelegraph reported, bulls survived last week’s low despite the inconvenience of the Ukraine invasion, hitting $34,300 versus $32,800 in January.
Prominent trader and analyst Bentoshi continued: “With caution, this is a low to medium outlook for bitcoin.”
“I have withdrawn my 40.3k orders (not good) and will focus on going up to 41.6k to get rid of the risk. I have to deploy it and it’s a decent upside. but bullish.
This macroeconomic landscape should have presented a new onslaught of uncertainty on Monday thanks to Western intervention to cut off Russian banks from external liquidity and the SWIFT payment system.
Russian President Vladimir Putin’s reference to Russia’s nuclear deterrence escalated tensions over the weekend as Ukraine and Russia began talks over the Belarusian border on Sunday.
Meanwhile, for Bitcoin supporters, the disruptive effect of Russian economic sanctions and the transformation of cryptocurrency into a neutral network of value transmission is starting to take center stage.
“We are still dealing with the fallout,” Balaji Srinivasan, former CEO of Coinbase, wrote as part of Twitter’s response to the central bank asset freeze.
“This is a financial neutron bomb. People go bankrupt without blowing up buildings. It hits all 145 million Russians at once, every ruble holder. In the worst case, the Russian economy could collapse.”
Ukraine, for its part, has begun accepting donations to its military in Bitcoin, Ether (ETH) and Tether (USDT). At the time of writing, the wallets have received over 91 BTC ($3.57 million), as well as 1,797 ETH ($5.02 million) and $1 million in USDT.
Weekends remain “boring” for cryptocurrencies
There were few opportunities for the crypto markets in general as sentiment remained in a wait and see mode.
Related: $10K Ethereum? The classic bullish reversal pattern indicates a possible rise in the price of Ethereum.
Among the top ten cryptocurrencies by market value, none of them have been able to make any noticeable moves up or down in the last 24 hours.
The ETH/USD pair was trading around $2,800 with weekly gains still close to 6%.
ETH/USD 1-hour light chart (bit-mark). Source: Trading View
Cointelegraph contributor Michael van de Poppe summed up: “Very boring market moves this weekend, and no wonder.”
“You may be approaching a very hectic and unstable week of war in Ukraine. Don’t interfere with your positions, just play slowly. Sentiment and momentum can change rapidly due to these political developments.”