Historically, whenever a global uncertainty prevailed due to geopolitical factors, investors have parked their capital in safe havens like gold or the US dollar. As soon as the news of the US govt decision to relocate its Ukraine embassy broke out, financial markets slid while Gold registered its biggest single day gain in four months. However Bitcoin (BTC), considered as a risk on asset by many, has managed to rise under uncertainty to gain 5% in the last 24 hours. Today, we are going to take a look at recent price actions of major cryptocurrencies and what to expect from BTC in the short term.
BTC had a successful rebound yesterday at the horizontal breakout level near $41,550. There was a confluence of support coming from the 20 day exponential moving average (EMA) and the horizontal support level at $41,550 that helped the rebound. Riding on the newfound momentum, BTC gained 5% over the last day to stand at $44,200. BTC will have to break its overhead resistance at $45,800 this week to continue its uptrend. On the flip side, if $41,550 is breached, the next support levels are at $40,800 and $39,260.
Ethereum (ETH), the second largest cryptocurrency, has held up strong in spite of a large correction in the broader crypto market. After leaning on the diagonal support for a couple of days, ETH bounced from $2,820 by 7.5% to trade near the $3,100 level today. According to digital assets firm Coinshares, ETH funds finally broke its 9-week spell of outflows. It registered a net inflow of $21 million this week as institutional investors see merit in the accumulation of the asset at these prices.
While the top cryptocurrencies have bled in the past week, the last 24 hours have presented some relief. Solana (SOL), Polygon (MATIC) and Avalanche (AVAX) headed the relief rally with a 9% gain while Ripple (XRP), Cardano (ADA) and Shiba Inu (SHIB) registered over 5% gain.
Among the top 50 cryptocurrencies, Gala (GALA) has raked in 20% gains as Gala games announced plans to spend $5 billion to expand its NFT portfolio. In addition to strong network dynamics with over 1.3 million active monthly users, the price surge is also attributed to reports of hip hop icon Snoop Dogg partnering with Gala games to release his album on the blockchain. Helium (HNT) and Hedera Hashgraph (HBAR) were the only other tokens to see double digit gains at 11% and 16% respectively.
With the geopolitical crisis looming over Ukraine, technical analysis of cryptocurrencies are likely to get invalidated in case of an outlier event (geopolitical or economical). Investors are generally advised to be prepared for short term corrections while navigating the markets. The current price levels, though, continue to be a good entry point for Bitcoin and Ethereum for the long term.
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Disclaimer: This article was authored by Giottus Cryptocurrency 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.