Bitcoin falters after Putin’s nuclear deterrent warning


Bitcoin’s price gained momentum early Monday, breaking through the 38,500 barrier zone, but faltered especially after the announcement of Russian President Vladimir Putin’s nuclear deterrent warning.

The cryptocurrency attempted an upward run above $39,500 and $40,000, but was corrected on Sunday when Putin raised the alert level for his country’s nuclear deterrent in the face of new Western sanctions for attacking Ukraine.

After falling 0.27% on Saturday, Bitcoin fell 3.65% to close out the week at $37,704.

In addition, it was a bleak session for the remaining major cryptocurrencies.

AVAX fell 8.07% while LUNA fell 7.30%.

ETH fell 5.84%, SOL weakened 5.12%, ADA fell 3.48, BNB lost 3.65% and XRP lost 3.92%.

Related article | Russia said SWIFT ban could equate to declaration of war

After a sharp upward move, BTC met sellers at the $39,500 and $40,000 levels.

BTC has begun a downward correction and is currently trading below $38,290.

It has now reached a new high above the USD 37,500 support zone.

The next critical support level is near $37,200, below which BTC could fall as low as $36,500.

Total Crypto Market Cap at $1,701 Trillion in Daily Chart | Source: TradingView.com

Nuclear Deterrence Drags Cryptocurrencies Down

The news that the Russian nuclear forces were being placed on “special alert” and the synchronized response from the West had an impact on market confidence.

The European Union responded by announcing that it would fund the “purchase and supply of weapons” and other equipment to a country “under attack”.

In addition, it closed its airspace to all Russian aircraft and banned Russian state television network Russia Today and Sputnik news agency from operating.

BTC is generally stabilizing above the USD 38,500 and USD 38,800 resistance levels. If the cryptocurrency exceeds $38,800, it could make a run at the $40,000 mark.

Bitcoin must break the $38,202 pivot point to challenge the first major resistance level at $39,360.

Related article | Russia said SWIFT ban could equate to declaration of war

Broad market support required for BTC

Bitcoin – the world’s most desired digital asset – would need broad market support to break the $39,000 barrier.

The Russian invasion of Ukraine will remain the main focus.

Any further escalation by Russia or the West would test Bitcoin and the support of the larger crypto market.

Aside from the news, US President Joe Biden’s State of the Union address on Monday night and the testimony of Federal Reserve Chairman Powell on Wednesday and Thursday are also expected to weigh on broader market sentiment.

Meanwhile, on the regulatory front, we are monitoring the White House Executive Order on cryptocurrency and the launch of the EU Markets in Crypto Assets.

MICA is a proposed regulatory framework for digital assets that parliamentarians are actively considering.

Featured image from Deccan Herald, chart from TradingView.com

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