Bitcoin has seen a resurgence in recent days on the back of the Ukraine/Russian conflict. The price has risen 15% as money has poured into the cryptocurrency. Western countries have placed economic sanctions as an attempt to reduce military conduct from Russia. This includes excluding several Russian banks from the SWIFT network. Consequently, the Rouble collapsed and in order to protect the Russian economy the Central Bank raised interest rates to 20%. The central banks also restricted foreigners from selling securities. In response, many Russian citizens have turned to crypto currency as an alternative Rouble. Russian denominated Bitcoin volumes touched 9-month highs in the past week to signify this shift.
The long-term trend of BTC/USD is showing an exhausted double top. For this to be confirmed the price needs to continue to move down and break through the support level at $28,892.
If the price can break through the neckline, then the next price target should be at around $50,000.
Disclaimer: Articles are from GO Markets analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by GO Markets. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.