Wednesday, October 5, 2022

Bitcoin Price Plummets in Response to Russian Attacks on Ukraine

As the regional conflict between Russia and Ukraine escalates, the digital currency ecosystem with the flagship digital asset, Bitcoin (BTC) has experienced a massive dump in overnight trading. 

The downward slump in the price of Bitcoin has dragged a complementary reaction amongst the host of altcoins being traded on exchanges today. The combined market capitalization is down by 9.64% and is currently pegged at $1.58 trillion dollars.

Bitcoin Current and Future Price Outlook

Per data from crypto markets aggregator, CoinMarketCap, Bitcoin is changing hands at $35,236.55, down 8.64% in the past 24 hours. While investors have continued to dump the assets considered for its riskiness and volatility amidst the current global market uncertainty, the digital currency has largely maintained a good growth trend thus far.

Despite the dim outlook in the broader market, the premier digital currency has notably recovered from the 24-hour low of $34,459.22 it recorded when the news of Russia’s invasion of Ukraine broke. The attempts by market bulls to regain control of the market irrespective of the underlying uncertainty is evidence of the unprecedented slump which liquidated as much as $147 million worth of BTC in the past 24 hours according to data from Bybit.

Bitcoin has been making a concerted effort to return to its winning ways, however, the fallout from the coronavirus pandemic and the response of Central Banks around the world has placed the investment community on a very tight edge. Both retail and institutional investors are largely sitting on the sidelines, waiting to FOMO in when a bullish rally sets in. However, attempts by the digital currency to chart a new growth curve have always been wedged down by a slew of unforeseen circumstances.

BTC/USD 4h Price Chart. Source: TradingView

The future of the digital asset is not in any way bleak when the BTC/USD 4h chart above as seen on TradingView. Despite the short-term Moving Average (MA) pointing downward, the Relative Strength Indicator (RSI) level of 32.46 affirmed that Bitcoin is in the oversold position and as a result, it is only a matter of time before a well-deserved bullish reversal is printed.

From a technical standpoint, a price target to reclaim the $38,000 resistance level is expected in the short term while we cannot rule out a resurgence back to $45,000 in the coming weeks.

Altcoins Received Beating

While Bitcoin ignited the poor performance, its dominance over the market has dragged altcoins with it on the path of massive valuation drops.

Ethereum (ETH) is down 12.80% to $2,368.13, Binance Coin (BNB) has lost 12.65% in overnight trading to $332.90, while Cardano (ADA), XRP, and Avalanche (AVAX) have all lost 17.63%, 13.42%, and 15.08% respectively. 

Despite these massive plunges, the hopes of recovery are high, and will closely trail BTC’s imminent recovery in the short to mid-term.

Godfrey Benjaminhttps://cryptomarketsbeat.com
I'm just a nerd who wants the world to know about the unique capabilities of blockchain and digital currencies

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