A complete anatomy of Bitcoin’s price action after Russia’s ‘invasion’ of Ukraine
As the situation escalated in the early hours of Thursday on the Russia-Ukraine border, major asset classes all around the world, including cryptos, tanked. With visuals from the ground in Ukraine showing explosions in the capital city of Kyiv and Kharkiv, the situation seems bleak.
In fact, Ukraine’s foreign minister also called out Russia for its “full-scale invasion” of the nation. Other observers have also started characterizing the conflict as a “war.”
<p lang=«en» dir=«ltr» xml:lang=«en»>Putin has just launched a full-scale invasion of Ukraine. Peaceful Ukrainian cities are under strikes. This is a war of aggression. Ukraine will defend itself and will win. The world can and must stop Putin. The time to act is now.— Dmytro Kuleba (@DmytroKuleba) February 24, 2022
According to CoinMarketCap, the global crypto-market is currently down by well over 9% over the past day. Bitcoin, for instance, was down by over 8.5%, at the time of writing.
Technically speaking, Bitcoin broke down below a crucial support level thanks to the ongoing conflict. It is now well below its 50 and 200 period moving average which would serve as stiff resistances too.
However, at press time, the RSI was below 30 and well into the oversold zone. To some, that means the crypto may be due for a reversal soon.
BTC/USDT | Source: TradingView
Bitcoin’s volatility amid this FUD has been skyrocketing too, with values well over 80%. Increasing volatility in the market would eventually result in increasing option IVs and a major liquidation of long positions both in Options and Futures.
Bitcoin Volatility Index (BVIN) | Source: Glassnode
Bitcoin’s Exchange Netflow volumes have also spiked up. Especially as more investors and traders are looking to exit their
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