Bitcoin, USD Talking Points
- Bitcoin prices remain rangebound as bears drive prices towards trendline support
- BTC/USD tumbles as Russia-Ukraine tensions remain at the forefront of risk sentiment
- Key technical levels continue to provide firm levels of support and resistance
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Bitcoin prices tumble to support amid heightened geopolitical risks
Bitcoin prices have fallen back below $40,000 as risk sentiment continues to follow developments in the conflict between Russia and the Ukraine.
With investors recently seeking refuge in safe-haven assets, riskier securities and rising volatility has recently weighed on digital assets, preventing BTC/USD to gain traction beyond the $44,000 handle.
Bitcoin (BTC/USD) Technical Analysis
After rising above the upper bound of the falling wedge formation earlier this month, bulls were able to temporarily drive price action above the key psychological level of $44,000 before retreating back towards the 50% Fibonacci retracement level of the 2020 – 2021 move at around $36,540.
As this level continues to provide support for the imminent move, the MACD (moving average convergence/divergence) has crossed on the zero-line while prices remain below both the 10 and 50-period MA (moving average).
Bitcoin Weekly Chart
Source: TradingView, Chart by Tammy Da Costa
With the bearish trajectory currently intact, price action remains below both the 10 and 50-day MA (moving average) as bears attempt to drive prices back within the confines of the falling wedge.
Bitcoin Daily Chart
Source: TradingView, Chart by Tammy Da Costa
If selling pressure continues to mount, bearish continuation could result in a retest of the January low ($32,932) which paves the way for the 38.2% retracement of the above-mentioned move at around $28,860.
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
