Market situation: Falling prices as tensions between Russia and Ukraine rise
As the risk of conflict between Russia and Ukraine on the border between the two countries increases, the situation in the global stock market and digital currencies has been declining since yesterday. In addition, many analysts believe that the downward pressure in the bitcoin market will continue for several more months.
To Report US President Joe Biden on Friday urged US citizens living in Ukraine to leave the country as soon as possible. Biden has warned that a military conflict between Russia and Ukraine could break out at any moment. The US president has refused to send troops to Ukraine as Russia prepares to launch a possible conflict in Eastern Europe.
The price of bitcoin has dropped by 5% in the last 24 hours. Atrium and Solana each experienced a 4% and 7% drop, respectively. At the same time as the fall in the price of digital currencies, the stock value of companies operating in the stock market also fell, while the price of gold and the US dollar rose in world markets. It is worth mentioning that the market situation has stabilized to some extent since the beginning of today.
The current state of Bitcoin technical indicators is largely neutral. The $ 40,000 to $ 35,000 area continues to act as support and the $ 46,000 level continues to act as price resistance.
Jason Pagoulatos, an analyst at Delphi Digital, said that over the past 10 days, most bitcoin trades have been in the $ 41,000 to $ 4,500 range.
“Delphi Digital Analyst says:
If support at this level ($ 41,000 to $ 41,500) is lost, the price will move to the levels where most trades were made; The range is now at $ 38,500.
Growing bitcoin dominance in the digital currency market
Bitcoin dominance in the digital currency market reached over 40% this week. Traders usually make more money in the bitcoin market during the fall in digital currency prices; This is because investing in bitcoin is less risky than investing in bitcoin.
During the fall of the digital currency market in 2018, the bitcoin dominance rate increased from 35% to 72%. During the year 2021, with the heating of the Altcoins market, this rate gradually decreased by 30%.
Some analysts believe that the bitcoin market will be under pressure for a few more months.
The New York Digital Investment Institute (NYDIG) wrote in its report this week:
After the market crashed last spring, it took about six months for Bitcoin to recover. If the market recovery is to take the same amount this time, we will have to wait until May to reach the previous prices.