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Bitcoin tanks as Russia goes to war with Ukraine, here’s what the charts suggest

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24
Feb
  • Bitcoin has taken another hit following reports of Russia invading Ukraine.
  • Analyst Lark Davis highlights a couple of charts that investors need to take an interest in.

Bitcoin and the broader cryptocurrency market have undergone another severe correction today as Russia declares war with Ukraine. Earlier today, President Putin ordered a ‘military operation’ escalating his attack on Ukraine.

As of press time, Bitcoin (BTC) is trading 8 percent down at a price of $35,716 with a market cap of $676 billion. With the recent crash, Bitcoin has extended its weekly losses to a staggering 18 percent. The broader cryptocurrency market is down by a staggering 10 percent eroding more than $200 billion worth of investors’ wealth.

The Bitcoin price action has been following the steep correction in equity markets. On Wednesday, February 23, the U.S. stock markets witnessed a strong correction with the S&P 500 losing 1.84 percent hitting a new low for the year 2022. Popular crypto analyst Lark Davis explains:

S&P 500 looking grim right now. Unless it bounces soon then it will take out the yearly low. Which was also a key area of support from 2021. And AS WE KNOW, if stocks tank, then #crypto will likely follow right along.

The analyst further explains that Bitcoin has failed to reclaim the 50-day moving average in early February. The analyst explains that this indicator is down for the first time since mid-2020.

On the other hand, a major cross-over has happened on the MACD levels for Bitcoin. Bitcoin’s MACD has gone into the negative which doesn’t happen much often. As per the historical trends, this is a sign that it is the beginning of a much bigger sell-off. The MACD levels indicate that we are entering a mega-bear cycle.

Key Bitcoin support levels to watch

Since Bitcoin has been breaking crucial support levels, analysts are expecting that we could be heading to $30,000 and even lower. analyst Lark Davis explains:

Key support for #bitcoin right now is at $33,000 and $29,000. At this time we can still look a higher low unless we go back under 33k. 29k Would be key to hold if the war fears really rattle the market. That is support from the 2021 lows.

As of now, the Bitcoin Fear and Greed Index has dropped into the “extreme fear” zone at 23/100. World leaders have condemned Russia’s actions. Ethereum founder Vitalik Buterin tweeted:

Very upset by Putin’s decision to abandon the possibility of a peaceful solution to the dispute with Ukraine and go to war instead. This is a crime against the Ukrainian and Russian people. I want to wish everyone security, although I know that there will be no security. Glory to Ukraine.

It remains to be seen as to how much the Russia crisis escalates and what impact it can have on the global crypto market.

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