Bitcoin (BTC) faced a drop to $40,000 on Feb 27 as hopes for the weekly close hinged on avoiding a fourth consecutive monthly red candle.
Tension increases due to the opening of the TradFi markets
Data of Cointelegraph Markets Pro and TradingView showed that The BTC/USD pair made several attempts to break out of the $30,000-$40,000 range on Sunday, all of which ended in a pullback.
The pair remained higher throughout the weekend, giving traders a respite after a week of volatility at the hands of geopolitics and media headlines.
However, $38,500 was the level to watch for Bitcoin to close out the week and month, as failure to do so would result in a fourth consecutive monthly red candle.
#bitcoin has less than 36 hours to close above $38.5k in order to break the streak and avoid having 4 straight red monthly candles https://t.co/PX45GlOLrZ
— Matthew Hyland (@MatthewHyland_) February 27, 2022
As Cointelegraph reported, the bulls were saved from a lower low last week, despite the move lower following the Ukraine invasion, bottoming at $34,300 vs. $32,800 in January.
“Cautically optimistic, this is a short to medium term bottom for BTC,” continuous the popular trader and analyst, Pentoshi.
“I pulled my $40,300 orders (not great) and will focus higher up to $41,600 for risk clearance. That level needs to be converted and there is a pretty decent upside. I remain cautious as the macro picture is anything but bullish”.
This macroeconomic picture was about to provoke a new bout of uncertainty at the open on Monday, thanks to measures taken by the West to prevent Russian banks from accessing foreign liquidity and the SWIFT payment system.
A mention of Russia’s nuclear deterrence by President Vladimir Putin has also caused a stir over the weekend, as Ukraine and Russia began negotiations on the border with Belarus on Sunday.
For Bitcoin advocates, meanwhile, the potential fallout from Russian financial sanctions and the cryptocurrency’s status as a neutral network for the transfer of value began to come to the fore.
What does it mean for USD & SWIFT if *both* sides of the conflict opt into #bitcoin for its superior features?
Answer: It means all countries & institutions better buy up as much #bitcoin as they possibly can now b4 their financial platform gets obsolete.
— Jason Lowery (@JasonPLowery) February 26, 2022
“I’m still processing the implications,” wrote former Coinbase CTO Balaji Srinivasan as part of a response on Twitter about freezing central bank assets.
“It’s a financial neutron bomb. It bankrupts people without blowing up buildings. It hits all 145 million Russians at once, all ruble holders. In a maximalist scenario, possible collapse of the economy.” Russian”.
For its part, Ukraine began accepting donations for its military in Bitcoin, Ether (ETH) and Tether (USDT). Their wallets had received more than 91BTC ($3.57 million), as well as 1,797 ETH ($5.02 million) and $1 million in USDT at press time.
A boring weekend for cryptocurrencies
However, for crypto markets in general, there was little opportunity as the stance remained in “wait and see” mode.
Of the top ten cryptocurrencies by market capitalization, none made notable moves up or down in the last 24 hours.
The ETH/USD pair is trading near $2,800, with weekly gains however approaching 6%.
“Pretty dull market moves over the weekend and that’s not uncommon,” summarized Michaël van de Poppe, Cointelegraph contributor.
“There is probably a very hectic and volatile week ahead with the war in Ukraine. Don’t get nervous about your positions, play it slow. Sentiment and momentum can change quickly due to these political events.”
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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