BITCOIN PRICES TUMBLE TO SUPPORT AMID HEIGHTENED GEOPOLITICAL RISKS

Bitcoin prices have fallen back below $40,000 as risk sentiment continues to follow developments in the conflict between Russia and the Ukraine.

With investors recently seeking refuge in safe-haven assets, riskier securities and rising volatility has recently weighed on digital assets, preventing BTC/USD to gain traction beyond the $44,000 handle.

BITCOIN (BTC/USD) TECHNICAL ANALYSIS

After rising above the upper bound of the falling wedge formation earlier this month, bulls were able to temporarily drive price action above the key psychological level of $44,000 before retreating back towards the 50% Fibonacci retracement level of the 2020 – 2021 move at around $36,540.

As this level continues to provide support for the imminent move, the MACD (moving average convergence/divergence) has crossed on the zero-line while prices remain below both the 10 and 50-period MA (moving average).

Bitcoin Weekly Chart

Source: TradingView, Chart by Tammy Da Costa

With the bearish trajectory currently intact, price action remains below both the 10 and 50-day MA (moving average) as bears attempt to drive prices back within the confines of the falling wedge.

Bitcoin Daily Chart

Source: TradingView, Chart by Tammy Da Costa

If selling pressure continues to mount, bearish continuation could result in a retest of the January low ($32,932) which paves the way for the 38.2% retracement of the above-mentioned move at around $28,860.