Bitcoin fails to break $40,000 which will likely create 4 consecutive monthly red candles

Bitcoin (BTC) encountered resistance at $40,000 yesterday (February 27) on expectations that the weekly close would clear 4 consecutive red monthly candles.

BTC/USD monthly frame price chart | Source: TradingView

Tensions between Russia and Ukraine increasing increase

Data from TradingView shows that BTC made multiple attempts to break out of the $30,000 – $40,000 range yesterday, all of which were rejected.

Overall, Bitcoin has held up well throughout the weekend, giving traders confidence after a volatile week under the influence of media and geopolitical headlines.

$38,500 is the level to watch as Bitcoin closes the weekly and monthly candles, analyst Matthew Hyland pointed out in a tweet yesterday.

“Bitcoin has less than 36 hours to close above $38,500 to break records and avoid 4 consecutive red monthly candles.”

Unfortunately, the reality is that Bitcoin ended the week below this mark. Monthly close is due today and BTC price is trading at $38,084.

“Cautiously optimistic, this is the near- to mid-term bottom for Bitcoin,” said analyst Pentoshi.

“I have withdrawn my position from 40,300 (not big) and will focus on 41,600 to reduce risk. The price needs to flip this level to make some pretty decent profits. I remain cautious as the current macro backdrop may be far from bullish.”

Source: Twitter

The macro context created a new phase of uncertainty earlier today (February 28) as the West looks to cut liquidity in Russian banks abroad and “rock” the payment system.

President Vladimir Putin also mentioned Russia’s nuclear deterrent over the weekend, as Ukraine and Russia began talks on the Belarusian border on Sunday.

Meanwhile, for Bitcoin proponents, the potential impact of financial sanctions on Russia and the cryptocurrency’s status as a value-transfer network are beginning to come into play.

“What does it mean for USD and SWIFT if both sides of the conflict choose BTC for its superior properties? The answer is that all countries and institutions are better off buying as much bitcoin as possible now that their financial base has been wiped out.”

Former Coinbase CTO Balaji Srinivasan has reacted to the central bank asset freeze.

“Still in progress. This is a financial neutron bomb. Destroy people without blowing up buildings. Hit the 145 million Russians who own the ruble instantly. In a maximalism scenario, the Russian economy could collapse.”

For its part, Ukraine began accepting donations to its military in Bitcoin, Ether (ETH) and Tether (USDT). These wallet addresses have received over 91 BTC ($3.57 million), 1,797 ETH ($5.02 million), and 1 million USDT as of press time.

You can see the details of the bitcoin price.

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