Following a warning from the US that a Russian invasion of Ukraine is impending, crypto prices have fallen this week, matching losses in larger markets.
Early this year, the market capitalization of cryptocurrency fell by 30% to $1.5 trillion, owing to fears of inflation and interest rate hikes in the United States.
Over the last 24 hours, the market has seen a bearish trend. The BTC/USD price has dropped below $40,000, a psychological level that may be difficult to surpass in the foreseeable future.
More Downtrend For BTC Price?
The asset had risen from its recent lows of $42,000 and was now challenging $45,000. Before the situation worsened on Thursday and Friday, the bears returned to the scene and gradually pushed BTC south to roughly $44,000.
The current stability of the Bitcoin price above $40,000 at the time of writing is expected to be a crucial component of the rise that could occur in the next positive move.
However, the bulls may be put to the test if BTC returns to the $42,000 resistance level, which was the coin’s next target. However, that resistance of $43,000 appears to be an impossibility right now.
The crucial support, on the other hand, is developed at a psychological cost of $38,000.
Altcoins Trade in red
Alternative coins have mostly followed BTC’s recent performance, which means that they are all in the red today. Ethereum is a good example of this. Earlier this week, it was above $3,200, but it has since fallen below $2,800. Since yesterday, Solana, Cardano, Avalanche, Shiba Inu, and MATIC have all dropped by similar percentages.
For the time being, a necessary rebound may be required in order to allow for a short-term buying spree.