As per the previous week’s analysis, published on February 17, bitcoin’s uptrend had been reversed, and volumes began to behave incrementally, evidencing the downward movement highlighted in the chart below.
This downward movement was strengthened after the declared war between Russia and Ukraine. In the view of Transfero’s Asset team, the geopolitical tension accelerated the bitcoin price fall, once again showing a rush for liquidity by major investors in the crypto world.
In addition, both Russia and Ukraine concentrate much of the bitcoin mining. “This is another factor leading to the drop in the price, as there is an increased risk of power loss in one of these countries”, said the analysts at Transfero. According to them, a continuation of this downtrend could take the price back to the US$ 29,000 level, this being robust support with large trading volumes.
It is worth adding that the Fear & Greed index has dropped considerably from last week to now. This demonstrated investors’ fear of the world’s current political/economic moment.
According to Transfero, another highlight in the derivatives/futures scenario was the increase in Puts volume in the last 24 hours (considering the date of February 22, when this article was written).
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