Bitcoin (BTC) Finds Support Despite Russia Sanction News

It was another choppy day for Bitcoin (BTC) on Tuesday. A bearish start to the day saw Bitcoin track the NASDAQ 100 Mini into the deep red before finding support. Recovering from a day low of $36,372, Bitcoin rallied by 3.41% to end the day at $38,301. On Monday, Bitcoin had fallen by 3.54%.

Geopolitics remained the key driver as the markets responded to news updates on Russia and Ukraine. Tuesday’s rise was just the 2^nd in 7-sessions.

The broader crypto market also found much-needed support.

LUNA led the way, rallying by 8.87%, with AVAX gaining 6.35%.

BNB (+4.93%) and SOL (+4.21%) also found strong support, while ADA (+3.62%), ETH (+2.69%), and XRP (+2.80%) trailed the front runners.

Bitcoin Fear & Greed Index Continues Upswing

On Tuesday, the Bitcoin Fear & Greed Index had fallen to 20/100 and back into the “Extreme Fear” zone. Finding support from Bitcoin’s gain on Tuesday, the index climbed to 25/100 this morning. Despite the rise, the index remained within the “Extreme Fear” zone this morning.

For the Bitcoin bulls, the Index will need to move back through to 50/100 to bring $50,000 levels back into play for Bitcoin. A fall through to sub-20/100 would deliver sub-$30,000 levels.

NASDAQ 100 Mini and Bitcoin (BTC) Correlation Remains

Bitcoin continued to track the NASDAQ 100 Mini throughout Tuesday. News updates on Russia and Ukraine remained the key driver throughout the day. News of hard-hitting sanctions on Russian banks and Russia’s elite initially weighed on risk sentiment. The fresh sanctions raised hopes that the conflict would come to a swift end, however, providing late support. There were also hopes that the impact of any conflict on the global economy could be contained.

At the time of writing, the NASDAQ 100 Mini was up by 113.5 points, providing Bitcoin early support.

Bitcoin Price Action

At the time of writing, Bitcoin was up by 0.05% to $38,319.

Technical Indicators

Bitcoin will need to avoid the $37,710 pivot to support a run on the First Major Resistance Level at $39,049. Support will be needed for a breakout from Tuesday’s high $38,458.

In the event of an extended rally, Bitcoin could test resistance at $40,000. The Second Major Resistance Level sits at $39,796.

A fall through the pivot would bring the First Major Support Level at $36,963 into play. In the event of an extended sell-off, Bitcoin could test support at $35,000. The Second Major Support Level sits at $35,624.

Looking at the EMAs and the 4-hourly candlestick chart (above), the signal is bearish. Bitcoin continues to sit well below 50-day EMA. A further pullback of the 50-day EMA from the 100-day and 200-day EMAs would place Bitcoin back under pressure.

A Bitcoin move through the 50-day EMA at the $39,800 level would provide some support.