By Nathan Ferguson
Bitcoin and the broad market will rely on updates from Ukraine and Russia after Thursday’s crash.
Bitcoin saw a second successful day in the red on Thursday. The dominance of crypto tracked movements by the NASDAQ 100 again as the marketplace reacted to the updates on Ukraine and Russia’s imminent war. The developments had investors fleeing risk markets, triggering downtrends across the board.
With the 1.53% decline on Wednesday, yesterday’s session had BTC losing 7.6% of its value, ending the day near $40.547. Nevertheless, the broad-based market sell-off had BTC testing the support of $40,000 before slight recoveries took the coin to $40,500.
The day’s dependable support offered little as a foothold, with BTC sliding through it. More significantly was a plunge through 50-, 100-, and 200-day Exponential Moving Averages. Meanwhile, Bitcoin’s fall triggered bearish sessions for the top ten cryptos.
Terra led the downside path, losing 10.8% of its price. More losses emerged from Ripple and Solana, dipping by 8.4% and 8.2%, respectively. Ethereum and Avalanche also struggled, dropping nearly 7% each.
NASDAQ 100 and BTC
NASDAQ 100 lost 2.88% during Thursday sessions. That came after the modest 0.11% drop on Wednesday. Market response to the updates on an impending war, Russia invading Ukraine, weighed on risk assets. For now, market participants may need to continue monitoring new updates from the US and Russia to detect upcoming market reactions. Meanwhile, Bitcoin mimicked NASDAQ 100 declines.
BTC Fear and Greed Index Still Climbing
The BTC Fear and Greed Index climbed to 52/100 on Thursday from 51/100 regardless of Wednesday’s decline. However, yesterday’s sudden sell-off had the Index dropping towards 30/1000 and into the Fear territory.
In the short term, the Index needs a move beyond last week’s peak 54/100 to expose the $50,000 zones for Bitcoin. However, a drop 25/100 will see BTC exploring $30,000 again.
BTC Price Action
While publishing this article, Bitcoin stood at $40,558, following a slight 0.03% gain. An upward move past the pivot of $41,613 would back BTC’s rise toward Thursday’s peak of $44,188. BTC would require massive support to overcome the crucial resistance at $43,122. The extended rally may see the crypto hitting the second critical resistance at $45,697 before dips resurface,
However, failure to rise past the pivot would see BTC at the first support barrier at $39,038. Nevertheless, excluding further continued downtrends will mean escaping the second support mark at $37,529.