BTCUSD Weekly Outlook and Bitcoin Fundamentals, 5th March 2022
The news about Russia and Ukraine crisis is a concern for bitcoin brokers and other financial institutions as the market becomes uncertain of its direction because of the fear factor in the crypto market.
Can the BTC coin over turn the resistance zone of 46000 for the trend to run or we get a rejection?
BTCUSD Technical Analysis
Monthly Resistance Levels: 69000, 60000, 46000.
Monthly Support Levels: 43290, 52620, 31000
The BTCUSD pair has been bearish since the year began. The bearish run started about three months ago before the support zone of 31000 slow the bearish run. If the price of bitcoin should breakdown lower than the support zone of 310000, we may see another selloff action on the pair.
However, the price is rising towards the high of 46000 at the writing of the report. The price of bitcoin did fell from the ATH of is at 69000 for three straight months. If the crisis in Ukraine is not brought to a level of control in weeks to come the price will drop lower.
The Indian brokers who must have bought from the deep will be having their fingers crossed as they anticipates a bullish run once the momentum of the price can close above the resistance zone for the bullish trend to continue.
Weekly Resistance Levels: 67015, 8000, 67522
Weekly Support Levels: 31500, 56426, 61000
The weekly time frame is displaying a reversal char when you look at the cryptocurrency market. A double bottom pattern will be confirmed when we see the price of BTCUSD close above the high of $46000 region. This week candle started strongly on a bullish trend and it may engulfed the other bearish candlesticks.
The bullish scenario may attract more Indian brokers to go long if the opportunity arises in this new trading week if the bullish momentum should increase.
On the other side of the market, if the price cannot overturn the resistance zone of 46000, we may see the price of BTCUSD drop back into the range and closes below the 31000 level for the bearish trend to continue.
Daily Resistance Levels: 60000, 46500,
Daily Support Levels: 32510, 31000
The BTCUSD pair on the daily time frame was able to hold its support level around 31000 dollar-mark while it was consolidating. Bulls took control of the market and engulfed the other candlesticks indicating their dominance in the market.
The bullish trend will be on the run fully if the price can close above the resistance level of 46500 which will be a psychological zone.
A bullish scenario start the trading week but it is not certain if the trend will continue, a close above the recent high will attracted more Indian brokers and other cryptocurrency traders into the market.
On the daily chart, if the price of BTCUSD falls below the 46000 after several attempts, we should expect the price of bitcoin to fall.
Bitcoin BTC News Events
RUSSIA TO LOVE BITCOIN?
The massive sanction on Russia has forced them to switch to cryptocurrencies and it will not be seamless as the general public anticipates it to be. Whales within Russia have been buying bitcoin as there are speculation that the elites are turning to crypto currencies as more sanctions are on the way.
Due to the various sanctions against Russia, USA and other European nations have kicked Russia out of the SWIFT so that the country is limited in its international transaction. On the other hand, if the country should switch to Bitcoin or other cryptocurrencies, It should have enough liquidity to make the switch because of the thinly traded markets. It will interest you to know that Ruble to Bitcoin market is around $200,000 which will be a tough task for the Russian authorities.
Another analyst, Asheesh Birla, the General Manager of RippleNet says that the Russian authority will still experience another challenge when it comes to exchange because it will need to leverage on the banks to move funds out. Therefore, the option of using decentralized exchanges as an alternative will likely bring about the problem of being less liquid than centralized exchanges.
BTCUSD Conclusion and Projection
The digital market has taken to a bullish direction but we have gotten a strong confirmation for the trend to continue as the price is within the resistance zone. Indian brokers will have to monitor the development in Ukraine and how the crisis is turning the global market.
The cryptocurrency market is a bit rattle because of the war, the bullish momentum in the market may continue or fall as events unfolds.