Bitcoin Price Outlook: BTC/USD Falters, Russia-Ukraine Tensions Rise

[MongiIG]

BITCOIN, USD TALKING POINTS

• Bitcoin prices fall below $44,000, is ‘risk off’ sentiment back on?
• BTC/USD gets the jitters as Russia-Ukraine tensions rise
• Key technical levels continue to provide firm levels of support and resistance

RUSSIA-UKRAINE TENSIONS LIMIT BITCOIN GAINS

Bitcoin prices are currently trading lower in today’s trading session after NATO and the US repudiated claims that Russian troops had been withdrawn from the Ukrainian border.

After temporarily reclaiming the $44,000 mark, escalated geopolitical tensions weighed on risk sentiment, limiting BTC/USD gains.

With rate increases now priced in, major event risk and the probable invasion of the Ukraine continue to drive sentiment. Meanwhile, prices remain between key technical levels which will likely play an additional role in determining Bitcoin’s next move.

 

BITCOIN (BTC/USD) TECHNICAL ANALYSIS

After breaking above the falling wedge formation earlier this month, the momentum of the bullish trend gained traction before running into a wall of resistance at $44,000, a level which continues to hold bulls at bay.

Bitcoin Daily Chart

Source: TradingView, Chart by Tammy Da Costa

At the time of writing, Bitcoin prices have declined by approximately 37% since achieving its all-time high in November last year. With the bearish trajectory currently intact, a test of $42,000 and a break below $40,000 may still be probable.

 

 

--- Written by Tammy Da Costa, Analyst for DailyFX.com. 17th Feb 2022