Bitcoin, Ethereum, Dogecoin Slump Amid Ukraine Crisis But There Are Bullish Signals Ahead Of Valentine's Day

Bitcoin, Ethereum, Dogecoin Slump Amid Ukraine Crisis But There Are Bullish Signals Ahead Of Valentine's Day

Bitcoin and other major cryptocurrencies traded lower on the eve of St. Valentine’s Day as the global cryptocurrency market cap fell 2.2% to $2 trillion. ​​

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -0.85% 0.75% $42,099.24
Ethereum ETH/USD -2.4% -4.5% $2,870.20
Dogecoin DOGE/USD 2.5% -4.3% $0.15
Top 24-Hour Gainers (Data via CoinGecko)
Cryptocurrency 24-Hour % Change (+/-) Price
Theta Network (THETA) +26.9% $4.26
Theta Fuel (TFUEL) +9.3% ​​$0.225
Celsius (CEL) +5.8% $3.42

See Also: How To Buy Bitcoin (BTC) 

Why It Matters: Bitcoin and other major cryptocurrencies remained under pressure due to the crisis brewing in Ukraine and the high U.S. inflation numbers released last week.

The dollar index — a measure of the greenback’s strength against a basket of six international currencies — rose 0.27% to $96.04 on Friday after the United States said Russia had amassed troops on the Ukrainian border to launch an invasion, according to a Reuters report

Cryptocurrency trader Justin Bennett said that he was waiting for the dollar index to flash an “engulfing pattern.” This is a pattern that is made up of a smaller green candlestick followed by a large red candlestick that overshadows the smaller candlestick. It signals a downtrend.

In a separate video, Bennett explained ± using a chart that tracked the movements of Bitcoin and the dollar index over time — that every time Bitcoin has topped out at the end of each bull cycle,  the dollar index has bottomed.

On Friday, Ethereum’s Russian-Canadian co-founder Vitalik Buterin tweeted in Russian that an attack on Ukraine could “only harm Russia, Ukraine and humanity.”

Edward Moya, a senior market analyst with OANDA noted that Bitcoin falling down on Russia-Ukraine news was not an isolated event — the same downward movement was also mirrored in other risky assets. 

On Friday, the S&P500 and Nasdaq closed 1.9% and 2.78% lower at 4,418.64 and 13,791.15.

“This is a minor setback in the cryptocurrency market rebound and should confirm the consolidation pattern that was forming,” said Moya in a note, seen by Benzinga. 

Meanwhile, a key metric indicates that bitcoins are being held instead of being traded, which could be construed as bullish. Glassnode data shows that the amount of Bitcoin supply last active (1-year - 2-year) has reached a 14-month high of 3.02 million BTC.

Amount Of Bitcoin Supply Last Active 1y-2y (Hour Chart, 1-Day Moving Average) — Courtesy Glassnode

Read Next: Bitcoin Breaks Above An Important Resistance Level And Rips: What's Next?

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