Since the Russian invasion of Ukraine began, Bitcoin (BTC) has experienced high volatility ranging from $34,000 to $44,000. Though considered as a risky asset, BTC has shown considerable strength amidst this geopolitical uncertainty. On the last day of February, BTC registered the highest ever single day gain of 14.5% in 2022. BTC trade volumes had also shot up by a considerable 45% indicating an increase in risk appetite among the market participants. In this article, we will take a look at the price actions of major crypto assets and short term outlook for BTC.
BTC soared above $40,000 yesterday and managed to close February at $43,160 to avoid four consecutive months of decline. While the recovery in the equities market was quiet, BTC has made quite some noise with its 14.5% gain on a single day showing signs of decoupling from tech stocks. BTC flipped major resistances at $40,000 and $41,400 to support in its aggression. However, it got rejected from the 100 day exponential moving average (EMA) at $44,150. The rally enacted liquidations to the tune of $310 million according to crypto firm Coinglass though bears are more likely to mount heavy selling pressure at higher levels like $45,000.
With BTC’s assistance, the top 20 altcoins painted a rosy picture after registering gains between 5% and 21% in the last 24 hours. Subsequently, the altcoin market capitalisation (excluding Bitcoin) claimed the crucial $1 trillion mark once again.
Ethereum (ETH) is currently gathering momentum to break its $3,000 resistance. ETH tested the 50 day EMA at $2,950 and backed off for the rest of the day to currently trade near $2,880. ETH closed February with a 8% gain after two successive months of declines of over 20%.
Terra (LUNA) led the altcoin rally by gaining 24%. LUNA, backed by the blockchain protocol that promises utility and scalability, began its uptrend near $50 on February 22 and managed to shrug off the effects of global crisis in between to print a local high of $91 yesterday. Dogecoin (DOGE) and Shiba Inu (SHIB), the meme coins among the top 20 cryptocurrencies, posted gains of 6% and 8% respectively.
Cosmos (ATOM) and Avalanche (AVAX) raked in nearly 13% gains. AVAX rally seems to have gained momentum from the news of Wirex, a leading crypto firm, expanding the ecosystem to enable 4.5 million users to access the Avalanche blockchain and tokens in the recently launched Wirex wallet.
After a strong double digit gain in February, March may see a corrective phase before BTC undergoes another surge. Global factors including the Russia-Ukraine war can alter the direction of crypto assets quickly. Also, the US Federal Reserve may announce a hike in interest rates this month that could lead to another short term pullback.
Given the multitude of factors currently at play, it will be prudent to dollar-cost average into the market and continue to make decisions keeping long term financial goals in mind.
Use promocode TNM51 at www.giottus.com/profile#promo after registration to get Rs.51 worth free Bitcoin
Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.