Bitcoin fell to the lowest levels of 40 thousand dollars just moments ago, and is trading at 39808.5 dollars for the symbol, down by 5.04%, as well as the first altcoin, Ethereum, fell 6.17% to trade at 2804.1 dollars for the symbol, the market capitalization of cryptocurrencies fell 1.82 trillion dollars, The volume of trading is 84 billion dollars in the last 24 hours.
Digital currencies have been falling strongly since yesterday in line with the global decline that hit all high-risk currencies and the American stock markets once morest the backdrop of renewed Russian-Ukrainian tensions, one day following there was news of a Russian decline that gave the markets comfort and an opportunity to rise, before foreign parties and Kiev returned to confirm that the decline The Russian side is not real yet, and armed confrontations between Ukraine and the separatists are then renewed, with the Ukrainian lands in Donabas receiving missile strikes from the Russian side.
Cryptocurrencies have fallen since last night, creating a real threat to Bitcoin to trade below the $40,000 levels, and Ethereum has also fallen below the important $3,000 levels, in these moments.
The top 100 cryptocurrencies fell and the total cryptocurrency capital fell by nearly 6% to $1.86 trillion following having crossed the $2 trillion mark in the past days.
Reasons for backtracking
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Investors, including the cryptocurrency market, are reacting to the development of the conflict between Russia and Ukraine. Investors fear a renewed escalation of the situation following a mortar attack in the Ukrainian region of Donbass, which, according to various reports, led to the destruction of several buildings, following some news raised hopes of a Russian withdrawal.
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The bitcoin price drop is also due to yesterday’s drop in the US stock markets. All major US stock indexes ended with sharp losses, notably the Nasdaq, which fell regarding 3 per cent.
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Finally, there is a fresh, and particularly hawkish, comment from FOMC member Bullard, St. Louis Fed Chairman, who once once more called for swift action by the central bank in the face of inflation.
Technical Levels of Bitcoin and Ethereum
From a technical point of view, many crypto investors believe that holding the $40,000 threshold is essential for Bitcoin to maintain any chance of a continued rally. In fact, the $39,500 – $40,500 area should be considered the key area when looking at the daily chart.
As a return below this major support will inevitably cause Bitcoin to fall towards the next support at $37,000. Several short-term resistances can be spotted to the upside, but the first really important hurdle on the daily chart is the $44,500-$45,500 region.
For Ethereum, yielding below $3000 is of course a negative sign, but the $2800 area has been a major support as I have seen it several times over the past few days. On the other hand, a break below $2800-$2850 would be a bearish signal. This should not be ignored as it might quickly drop towards $2,600 following that.
