Threat of war in Ukraine has markets reeling, Bitcoin stuck in a tight range
Crypto and stock markets took a hit today, possibly related to concerns over Russia deploying more than 100,000 troops on the Ukraine border.
The danger of war in Ukraine
The market seems to be rocked by uncertainty about a possible invasion of Ukraine.
Although there was no confirmation that orders for an invasion had been issued, US National Security Advisor Jake Sullivan said today, “We are at a point where an invasion could begin at any time.” Russia has more than 100,000 troops in stationed near the Ukrainian border, and the Biden administration has repeatedly urged Americans to leave Ukraine this week.
The crypto market is down about 4.8% in terms of total market cap on concerns, with the two major coins Bitcoin and Ethereum down 1.6% and 3.8% respectively over the past 24 hours. Stock market indices also fell today while ‘fear’ assets like gold rallied.
The largest cryptocurrency has seen tough moves that resulted in $220 million in crypto long and short positions being liquidated in the past 24 hours.
Source: coin jar
With the inflation narrative still in full swing, attention is focused on the likelihood and timing of Federal Reserve rate hikes.
“Markets are already pricing in a rate hike. However, if there is an unexpected emergency rate hike next week or a quick rate hike, it would be bad for the market and could potentially trigger a shock reaction. Therefore, there is still relatively calm in retail,” said analyst Michaël van de Poppe.
Trader and analyst Scott Melker, known as the “Wolf of All Street,” has noted the tight range on the chart on the lower timeframes, represented by the location of resistance and support.
$BTC 4 hours
Tons of supply and resistance above $45,000 as indicated by the uptrends.
Tons of demand and support in the low $43k areas as shown by the downside wicks. pic.twitter.com/QAAIVSXJkG
– The wolf of all streets (@scottmelker) February 11, 2022
“BTC 4h chart:
Above the $45,000 level, there is ample supply and resistance as indicated by the bullish whiskers.
There is a lot of demand and support at the $43,000 bottom area as evidenced by the bearish candles.”
For Anbessa, another popular commentator, it’s time to focus more on price action and sentiment and less on fundamentals to guide upcoming moves.
“Don’t fight the market. Forget all the basics. I’m just looking at price action (+psychology),” he said tweets on Feb 11, keeping the mid-term target above $48,000.
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