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 showed that the BTC/USD card rose $1,400 before turning around and settling below $40,000 on Friday.
The move comes on the heels of recent comments by Russian President Vladimir Putin, who, at a meeting with his Belarusian counterpart Alexander Lukashenko, said that there are “positive changes” in the dynamics of Ukraine.
“There are some positive developments,” the retailers said on our website, citing Reuters and others.
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 short-term downsides should be inevitable.
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 domestic rallies of $40,200 caused a moderate shutdown of short positions on derivatives platforms.
Coded filter scheme. Source: Coinglass
Traders keep calm
Bitcoin remains below the upper bound of the designated trading area, as the area north of $42,000 has proven impossible to hold in the long-term 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.