BTCUSD, Day
The financial world, including cryptocurrencies, is reeling from the tensions between Russia and Ukraine. Yesterday, BTCUSD dropped more than 7% from its opening price of $43,985 to close at $40,644, putting the $40,000 key support to the test again after failing to cross the 200-DMA at the $45,000 zone.
In early 2021, Bitcoin referred to as the new safe haven asset, or “digital gold” and appreciated to $60,000. However, as of 2022, Bitcoin’s movement has shifted towards the riskier asset classes such as stocks and indices. It is now under pressure from the Fed’s accelerating interest rate hikes and the rate hike due in March that will include a nearly $9 trillion balance sheet downgrade.
Elsewhere, President Biden has issued a special order for joint discussions with relevant agencies next week to learn about the risks of cryptocurrencies and other digital assets that may affect the stability of the US Dollar. The order follows disagreements between Biden and Finance Minister Janet Yellen about the government’s role in cryptocurrencies.
Technically $40,000 could become a key price level. As the price settles before the FOMC meeting and next month’s interest rate decision, the MACD is now narrowing around the 0 line and the RSI is resting at the 50 level. If prices can break down first there will be the next key support in the $35,000 zone, while the key resistance remains at the MA200 at the $45,000 zone, with the Russia-Ukraine situation being a stress test.
Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand
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