Home News Bitcoin consolidates after $40K surge as analyst eyes weekly higher low for...

Bitcoin consolidates after $40K surge as analyst eyes weekly higher low for BTC price

4082
0

On Feb. 26, Bitcoin (BTC) began a tense weekend at roughly $39,000, following an overnight rally that saw the price return to $40,000 for a brief period.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Stocks are rising, but “fear” of cryptos is widespread

The data for BTC/USD suggested calmer conditions. Bitstamp touched a high of $40,330 on Saturday after overnight volatility.

With normal markets closed, the risk of “fakeout” moves up or down was heightened due to reduced weekend volumes on crypto markets.

The geopolitical turmoil surrounding Ukraine and its occupying force, Russia, served as a backdrop for greater caution, with fears that Monday could bring even more upheaval.

The Crypto Fear & Greed Index, while rising towards the end of the week, remained in the low “fear” zone at 26/100.

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

Meanwhile, the weekly chart revealed a potential silver lining for Bitcoin bulls. BTC nonetheless managed to make a higher bottom than January’s $32,800 drop with its recent $34,300 low on the Ukraine invasion.

If that holds, Rekt Capital, a trader and analyst, believes that February’s drop from $45,500 was “necessary” consolidation.

In the meantime, macro markets finished the week on a high note, with large gains in both European and American indices.

The US dollar, which had risen in value as tensions erupted, has given up the majority of its gains, with the US dollar currency index (DXY) falling to 96.5 from a high of 97.7.

U.S. dollar currency index (DXY) 1-hour candle chart. Source: TradingView

LUNA is the most valuable of the top 10 altcoins

Altcoins presented a varied but still positive image. Major tokens rose about 50% in a week on Saturday, topped by Terra (LUNA).

With Bitcoin’s price dropping, some late gains were still visible, such as for XRP. Which was up 10.3% in the 24 hours leading up to this writing.

After attempting to exceed $2,900 overnight, Ether (ETH), the largest altcoin by market cap, soared above $2,750 on the basis of 5.6% daily gains.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin plunges as Putin announces ‘special military operation’ in Ukraine

Previous articleECB president calls for crypto regulation in response to Russia potentially evading sanctions
Next articleEuropean Parliament postpones crypto bill vote over proof-of-work