Bitcoin (BTC) immediately saw volatility on March 11 amid hopes that the Russian-Ukrainian conflict could find a diplomatic solution.
Hourly BTC/USD light chart (Bit Mark). Source: Trading View
Hope is rising, and so are Bitfinex shorts
Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD gained $1,400 before turning below $40,000 on March 11.
Bitcoin, already known for its lack of “love” to escalate armed conflict, immediately re-aligned itself with stock markets in Europe and the United States. Germany’s DAX jumped 2.6% on the news, while S&P 500 futures rose 1.1% ahead of Wall Street’s open.
At the time of writing, volatility in the BTC/USD pair remains as the bulls struggle to break the $40,000 resistance more convincingly.
However, there were earlier warnings from those who watched a quick short on the major Bitfinex exchange – a classic sign that downsides may soon be imminent.
At the time of writing, they have continued to rise, visible on both the daily and lower time frames and at their highest level since July 2021.
Short BTC/USD on the 1-day chart (Bitfinex). Source: Trading View
Data from monitoring resource Coinglass showed that pressure on the domestic rallies of $40,200 caused a moderate shutdown of short positions on derivatives platforms.
Coded filter scheme. Source: Coinglass
Traders keep calm
Bitcoin continues to stay below the upper bound of the designated trading area, as the area north of $42,000 has proven impossible to hold for extended periods of time until 2022.
Related: Big Buy? Nearly 30,000 Bitcoins Leave Coinbase Pro in 3 Transactions
However, the recent price action has been a boon to some traders, with the Anbessa Twitter account telling followers that everything is going according to plan.
Meanwhile, his colleague Pierre has highlighted the growing wedge of support that the Bulls must ideally maintain.