TOPICS IN THIS BITCOIN ANALYSIS
- Bitcoin: an alternative against Western sanctions
- BTC/USD: The $45,000 level is a key pivot
Bitcoin: an alternative against Western sanctions
The European Commission is investigating whether cryptocurrencies are being used to circumvent financial sanctions imposed on Russian banks after the country invaded Ukraine.
Trading volumes between the Russian ruble and the cryptocurrency Tether have soared this weekwhile the local currency has plunged to an all-time high following Western sanctions.
Russians who see their currency falling, have increased their purchases of bitcoin. Finally, the BTC a form of safe haven when it comes to finding a way to conduct financial transactions. Thereby, digital currencies benefitent the extension of sanctions against Russia.
Bitcoin in daily data
BTC/USD: The $45,000 level is a key pivot
On the graphic side, Ie Bitcoin is once again working its resistance zone around $45,000. Technically, the market could validate a trend reversal pattern with a double bottom at $33,850. Thus, the break of the neck line towards $46,000 would pave the way for a large bullish rally. Thereafter, the BTC would regain height to regain the next levels located at 48,250 dollars then 50,500 dollars. However, the chart analysis suggests a theoretical target figure around $53,250.
On the other hand, in the context of a “trading range” scenario, it will be necessary to pay attention to a reversal signal on the current resistance zone. A failure over $45,000 accompanied by a reversal candlestick would be interpreted as a run out of buyers. Consequently, a new price rotation towards 41,000 dollars and then the lower limit of the range at 33,850 dollars cannot be ruled out.
Twitter @Joris Zanna
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