The downward trend from the November 2021 high is still intact. However, the increased severity of the conflict between Russia and Ukraine on the commodity market as well as the global economy has supported demand for safe-haven assets. This has led to an increase in demand for oil, wheat and gold assets/currencies that have safe-haven appeal.
While Bitcoin, Ether, and other alt-coins are still vulnerable to volatility and risk aversion, BTC/USD has stabilized above the psychological $40,000 level which will likely provide support and resistance for any upcoming move. Bulls had failed to break the $44,000 mark, and bears were able to temporarily drive prices back to the zone of confluency formed by historical Fibonacci levels.
BITCOIN (BTC/USD TECHNICAL ALYSIS
Bitcoin prices are currently between 50 and 61.8% Fibonacci Retracement levels at the 2020-2021 movement levels of $36,338 support and $44,000. Bulls managed to push prices higher after bouncing off psychological support at $33,000 last week before hitting resistance at $44,000.
A series of long wicked candles over the weekly time-frame indicates indecision as the prices remain below the 50-period average (MA).
Meanwhile, on the daily time-frame, following the formation of a ‘death cross’, a test of the $36,539 Fibonacci level allowed price action to rise above the 50-day MA (moving average), providing an additional layer of support while the MACD (moving average convergence/divergence) trades along the zero line.
