The war between Russia and Ukraine has raged for almost eight months, and no end seems to be in sight.
As an aftereffect of the war, the price and supply of several commodities, including energy, petroleum, and other raw materials, have reacted negatively and moved to the high side.
One of the most prominent commodities to suffer the most from this inflation has been the cryptocurrency market, with bitcoin taking one of the worst hits and dragging the rest of the market down with it.
Price Action of Bitcoin
Bitcoin has been slipping lower throughout the year and is now at one of the last lines of support before a massive and devastating drop.
Over the last month, BTC has hovered below the $20,000 support and has failed to either move above it or sink below the $18,000 zone.
However, as the Russia-Ukraine war escalates and several commodities continue to feel the heat, bitcoin shows signs of weakness around the $19,500 zone.
Over the last day, the pressure applied by the bears became evident as bitcoin slumped below the $19,000 zone and traded briefly around the $18,900 zone. This move to the downside also brought the price of Bitcoin further below the 100-period moving average on the daily timeframe.
To the upside on lower timeframes, an immediate resistance sits around the $19,300 zone, further strengthened by the 100-period moving average and the 0.5 zone on the Fibonacci retracement tool.
As support, bitcoin appears to have bounced off the $18,970 zone and may start to trend upward to the resistance specified by the $19,370 zone and the 0.5 Fibonacci level.
Fear and Greed Index
Several other indicators show that bitcoin is currently experiencing a bearish streak. However, when indicators point to market conditions being bearish, it may serve as a good sign to buy
One of these indicators is the Fear and Greed Index, which uses general market sentiment to predict where the BTC market may be headed.
Bitcoin’s fear and greed index show extreme fear, meaning that investors are worried about where bitcoin may be headed.
Bitcoin Furter Price Outlook
BTC, as illustrated earlier, is in the middle of a bearish pattern. The cryptocurrency’s price is currently struggling to hold its ground around the $19,000 zone, and a breakdown of the immediate support around the $18,200 zone would result in an 18% move to the downside.
However, it is important to exercise patience and expect a small rally that brings the bitcoin price to the $20,100 zone before any kind of downward rally.
However, if the $18,000 zone fails to hold, bitcoin may slide down to the $17,200 zone. And in the case of a strong selloff, the $14,000 zone may be where the price is headed next.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)