Bitcoin Tumbles to $38K Amid Worsening Geopolitical Tensions
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The benchmark cryptocurrency slumped to the $38K low on Sunday as the ongoing geopolitical tensions and other macroeconomic factors continued to dictate price action for the crypto market.
BTC dipped by over 4% this morning despite a relatively bullish performance last week, as the broader crypto market capitalization shed about $78 billion.
Despite the Sunday crash, the primary cryptocurrency traded 5% higher than the month before. Meanwhile, Ethereum (ETH) fell to the $2,589 low on Sunday morning, down by almost 4% on the day, 5% on the week, and 2% in March.
Commenting on the latest developments in the crypto market, market analyst Holger Zschaepitz noted that global equities have lost almost $3 trillion in valuation last week as the ongoing Russia-Ukraine crisis threatened a “huge stagflationary shock.”
BTC now has a three-day drop of about 12%, with the broader market losing $99 billion in valuation within the same period.
That said, the short-term price outlook for BTC remains on the cautionary side, with the most optimistic forecast pointing to a sideways pattern for the cryptocurrency.
Key Bitcoin Levels to Watch — March 6
After a steady recovery towards the upper-$39K axis since Friday, BTC has plummeted to a new monthly low at $38K on Sunday morning. Not surprisingly, the fall came following the emergence of a bearish flag pattern on my hourly chart.
To negate the renewed bearish bias, bulls need to overcome the 200 SMA, which coincides with my $41K – $31K pivot top and $41K resistance line. Unlike then, we can expect to see a consecutive pass-and-play momentum between the upper-$40K limit and the $38.5K base.
Meanwhile, my resistance levels are at $39,000, $40,000, and $41,000, and my key support levels are at $38,500, $38,000, and $37,000.
Total Market Capitalization: $1.75 trillion
Bitcoin Market Capitalization: $737.8 billion
Bitcoin Dominance: 42%
Market Rank: #1
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