BTCUSD – Down 7% To Test $40K


The financial world, including cryptocurrencies, is reeling from the tensions between Russia and Ukraine. Yesterday, BTCUSD dropped more than 7% from its opening price of $43,985 to close at $40,644, putting the $40,000 key support to the test again after failing to cross the 200-DMA  at the $45,000 zone.

In early 2021, Bitcoin referred to as the new safe haven asset, or “digital gold” and  appreciated to $60,000. However, as of 2022, Bitcoin’s movement has shifted towards the riskier asset classes such as stocks and indices. It is now under pressure from the Fed’s accelerating interest rate hikes and the rate hike due in March that will include a nearly $9 trillion balance sheet downgrade.

Elsewhere, President Biden has issued a special order for joint discussions with relevant agencies next week to learn about the risks of cryptocurrencies and other digital assets that may affect the stability of the US Dollar. The order follows disagreements between Biden and Finance Minister Janet Yellen about the government’s role in cryptocurrencies.

Technically $40,000 could become a key price level. As the price settles before the FOMC meeting and next month’s interest rate decision, the MACD is now narrowing around the 0 line and the RSI is resting at the 50 level. If prices can break down first there will be the next key support in the $35,000 zone, while the key resistance remains at the MA200 at the $45,000 zone, with the Russia-Ukraine situation being a stress test.

Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distribution.