Following Putin’s Nuclear Deterrence Alarm, Bitcoin Gained Momentum

Bitcoin (BTC) went right through the resistance level at $38,500 on early Monday morning and then fell again when Russian President Vladimir Putin issued a nuclear deterrence alert.

Bitcoin (BTC) incurred a price correction after it was headed to $40,000 the day before. The price correction was affected by the increase of Western Sanctions on Russia as a punishment for invading Ukraine, to which the country responded by issuing an alert on nuclear deterrence. 

After a 0.27% drop on February 26, Bitcoin (BTC) dropped 3.65% to $37,704 at the end of the week.

In addition, the remaining altcoins had a bleak outlook as well. While Avalanche (AVAX) and Terra (LUNA) fell 8.07% and 7.30% respectively, Ethereum (ETH) was down 5.84%. Solana (SOL) incurred a 5.12% decline, Cardano (ADA) 3.48%, and Binance Coin (BNB) and Ripple (XRP) fell 3.65% and 3.92%.

Market confidence was damaged by the announcement that Russia’s nuclear capabilities had been put on the so-called special alert, as well as the West’s coordinated reaction. The European Union retaliated by saying it would fund the buying and delivery of weaponry and other equipment to a country facing attack.

The EU in addition went insofar as to block its airspace to all Russian aircraft and suspend the operations of the Russian government tv channel Russia Today and the news outlet Sputnik.

Overall, the biggest cryptocurrency is holding over the $38,500 and $38,800 support levels. Should Bitcoin (BTC) rise above $38,800, it could potentially challenge the $40,000 level. To test the first significant barrier at $39,360, Bitcoin (BTC) must push past the $38,202 pivot point. However, there is a need for significant and widespread market support for this breakthrough to take place. 

The spotlight will remain on Russia’s occupation of Ukraine. It just so seems that Bitcoin (BTC) specifically and the cryptocurrency market generally will be challenged by any greater retaliation by Russia or the Western countries.