BTC/USD Is in a Downward Correction as Bitcoin Risks Decline to $36K
BTC Price Reaches Oversold Region as Bitcoin Risks Decline to $36K– March 5, 2022
BTC/USD has continued to face rejection at the $45,000 overhead resistance as Bitcoin risks decline to $36K. Today, the largest cryptocurrency has slumped to the bearish trend zone after three rejections at the recent high. The downtrend will resume if the bears break below the $39,000 support.
Resistance Levels: $70,000, $75,000, $80,000
Support Levels: $50,000, $45,000, $40,000
On March 2, BTC’s price has turned from the $45,000 overhead resistance and plunged below the moving averages. This is an indication that the bears are defending the overhead resistance. Bitcoin’s (BTC) price has fallen below the moving averages indicating a possible downward movement of prices. . However, if the bears break below the $39,464 support, the market will decline to the low of $36,000 price level. On the other hand, if the current support holds, the BTC price will rebound and break above the moving averages. The cryptocurrency will rise and revisit the $45,000 overhead resistance. Bitcoin is at level 49 of the Relative Strength Index for period 14. It indicates that there is a balance between supply and demand. Today, Bitcoin risks further decline if it turns from the moving averages.
Russian Crypto Purchase in Rubble Falls across Major Exchanges
According to a report, Russian denominated crypto purchasing and trading have fallen on major exchanges. This is not unconnected to an increase in economic sanctions on Russia which has affected crypto being purchased in rubles across major exchanges. Data from Chainalysis
indicated that ruble-denominated crypto trading volume was just $34.1 million on Thursday. This is far below a recent peak of $70.7 million on February, 24. This has demystified the theories that the country will shift to digital assets to circumvent sanctions.
In a related development, the New York state has increased its blockchain surveillance to prevent cryptocurrencies or digital assets from being used to support Russian interests. On February 27, NY Governor Kathy Hochul has given an executive order compelling state agencies to divest from Russian institutions and companies. She said: “New York is proudly home to the nation‘s largest Ukrainian population and we will use our technology assets to protect our people and show Russia that we will hold them accountable.”
Meanwhile, BTC’s price has fallen below $39,000 support as Bitcoin risks decline to $36K. BTC price is below the 20% range of the daily stochastic. Further selling pressure is unlikely as the market reaches the oversold region. Buyers are likely to emerge to push prices upward.
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