Bitcoin Plummets Near $30K Amid Worsening Russia-Ukraine Tensions

Updated:

Bitcoin (BTC) suffered another debilitating blow on Tuesday as it fell to the lower $36,000 end amid the worsening geopolitical tensions between Russia and Ukraine. That said, many analysts now opine that $30,000 could come into view again.

Today’s drop to the $36,370 low makes it the third consecutive daily decline for the benchmark cryptocurrency after Russian President Vladimir Putin recognized two self-proclaimed separatists in Eastern Ukraine and ordered troops to secure the area.

While Bitcoin plummeted near its monthly low at $36,270, a decline that began on February 16, gold has performed remarkably better over the same period, reaching its highest point since June.

Commenting on the ongoing development, John Roque of 22V Research noted on Monday:

“In the globe’s latest maelstrom — U.S./Russia/Ukraine — Bitcoin, the asset purported to be the answer to every question, has quietly weakened and is notably underperforming its arch-enemy, gold.”

Roque forecasted that BTC could fall to $30,000, a low not seen since July 2021, due to the temporal migration of investors from BTC to safer assets like gold.

Also, co-founder and managing partner of Nexo, Antoni Trenchev, noted: “Bitcoin’s inability to hold $40,000 amid heightened Ukraine tensions means $30,000 is back in play,” adding “Geopolitics has, for now, replaced inflation as the primary driver of both traditional and crypto markets.”

Key Bitcoin Levels to Watch — February 22

After barreling to a multi-week low at $36,370 earlier today, BTC appears to have entered a minor bullish correction before a possible continuation lower. The rebound comes after the benchmark cryptocurrency hit my mini descending trendline on the 4-hour chart, which has repelled the price on contact for the past week.

BTCUSD – 4-Hour Chart on Gemini. Source: TradingView

That said, BTC needs to secure a break above the critical $39,000 level in the near term to negate the current bearish sentiment. Considering the prevailing conditions in the global macroeconomic space, a bullish push above the previously mentioned critical level seems unattainable.

Meanwhile, my resistance levels are at $38,500, $39,000, and $40,000, and my key support levels are at $36,320, $36,000, and $35,000.

Total Market Capitalization: $1.67 trillion

Bitcoin Market Capitalization: $707.4 billion

Bitcoin Dominance: 42.2%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.