However, the market bucks the downtrend in cryptocurrencies as Bitcoin finally recovers $44,000. The next step will be to obtain the $46,000.
The total capitalization of crypto assets is $1.9 trillion, according to CoinMarketCap, which means that some $200 billion entered this market since Monday, accompanied by a significant increase in volume in both rubles and Ukrainian hryvnias.
Trading volumes of Satoshi Nakamoto’s brainchild on the ruble soared to the highest level since May, while those based on the Ukrainian hryvnia surged to a level not seen since October, according to crypto data firm Kaiko.
“The trend comes on the heels of the wave of sanctions against Russia, which has disrupted currency markets and sent the ruble sinking to record lows against the dollar,” said Clara Medalie, head of research for Kaiko.
Sanctions from the European Union (EU) and the US caused a rally in cryptos, according to Naeem Aslam, head of analysis at Avatrade. Crypto currencies are in the spotlight as their community believes that bitcoin is the alternative and is the ultimate world currency, he added.
“The price crossed a major $40,000 price level, and now all eyes are on the next major resistance level at $46,000 in round figures,” he said. Earlier, the 61.8 fibonacci level, at just over $44,000, looks like the certain fate of the queen of crypto.
From a technical analysis point of view, “Bitcoin futures pointed out two important short-term levels: the lows of Thursday of last week ($34,295) and below the lows of January at 32,855 points”commented Jos Mara Rodrguez, an analyst at Bolsamana.
We have no turnaround figure of any kind in the Bitcoin future. It’s early days for that, he added. “But at least we have a very clear support zone on the line that joins the successive increasing lows since last summer, with four support points on it, and this month’s highs as resistance: $46,000 in round numbers. And anything that happens between that resistance at the February lows will have no implications whatsoever for the current price structure,” the analyst concluded.