Bitpanda Spain Country Manager Alejandro Zala shared again in Spanish with Cointelegraph his first weekly analysis of the cryptocurrency market in March, stressing that the last seven days have been riddled with volatility, mainly caused by the geopolitical turmoil caused by the conflict in Eastern Europe, where Russia invaded Ukraine. According to Zala, the war has generally caused shock and turmoil in financial markets, where sharp selling of indices has occurred, while the recovery has only been partial so far, including cryptocurrencies.
“Bitcoin crashed to a low of €30,750 before bouncing back to €40,000. All major altcoins followed the largest cryptocurrency in volatile sessions, posting double-digit percentage losses, followed by a quick recovery earlier in the week. Stock markets rallied after the European Union, the United States and many other countries announced they would impose tough sanctions on Russia,” Zala commented in the first part of his analysis.
The biggest daily increase in BTC price in more than a year is recorded
According to Zala, Bitcoin has been moving higher in recent days along with other major altcoins and world stock indexes. “On Monday morning, it recorded its biggest daily ride in over a year. The buyers increased the price by around €5,000 and BTC reached €40,000,” he said.
For him, the current war could add even more upward pressure on Bitcoin as the Russian ruble plummets amid sanctions imposed on Russia, cryptocurrencies are attracting more buyers as a potential hedge against local currency defaults. “On-chain data shows that the number of Bitcoin addresses has hit a new all-time high, now over 40 million addresses, a sign that cryptoasset adoption is growing rapidly,” he said.
Zala also mentioned that Bitcoin’s price hit its highest level in almost 3 weeks this week, but that some altcoins saw even bigger gains. Likewise, he pointed out the market capitalization of the largest cryptocurrencies, which is currently around 750,000 million euros, while the total market capitalization of cryptocurrencies is currently around 1.7 billion euros.
However, he noted that the BTC movement could take the broader cryptocurrency market into a more volatile and “rollercoaster” trend.
Altcoins are mostly back in the green
In another context, regarding altcoins, Zala explained that the majors have traded in the green for the past seven days, with massive spikes on some days driven by volatility. “Ethereum bulls pushed ETH price above the trendline resistance level to €2,700, its highest in three weeks,” he explained.
â€œETH will likely track Bitcoin price and fundamental developments. To avoid a fake-out, the close of the daily candle must remain above the trendline support level,” Zala added. .
Regarding Cardano, Zala said that ADA continued to move higher and broke the long-term trendline resistance level and hit the local high of €0.9. “A break above this level will put ADA in a bullish zone. The long wick on March 1 suggests that there are many sellers in the $0.85-0.9 area,” he commented.
On the other hand, he also mentioned Ripple, which informed us that it rose above the downtrend line on February 22nd. “XRP price has moved away from the €0.72 resistance line but is still trading above the 13- and 20-day moving averages (MAs), indicating that the short-term bullish momentum is still in production is zala analyzed.
“The RSI momentum indicator is mostly flat, suggesting a supply/demand balance that could shift in favor of buyers if the price of XRP manages to rise and stay above the trendline,” and goodbye .
On Polkadot, Zala said it also had an impressive performance with bullish moves. “DOT hit €17.65, up 35% from its local low of €12.85. The altcoin is now trading above both the 13-day and 20-day moving averages, but the long wicks suggest bears are still selling higher. The RSI is sitting just above the midpoint, which points to possible short-term range action,” he said.
The fear and greed index returns to a neutral point
Finally, Zala wanted to address how the Russian invasion of Ukraine has affected market sentiment, saying: “Financial markets are generally subject to risks related to the development of the war. However, given the circumstances, even commentary and news could impact market sentiment.”
“Over the past week, the Crypto Fear Greed Index has climbed from 23/100 to 33/100 and hit 39/100 on Thursday, moving from an area of extreme fear to a more neutral but still fearful area that investors reached an agreement between expect from the countries,” he concluded.
Disclaimer: This material is intended as commentary on economic or market conditions and does not constitute financial analysis or advice. The analysis presented here corresponds to Bitpanda’s Country Manager in Spain and under no circumstances constitutes investment advice from Cointelegraph. Everyone must do their own research before investing and are responsible for their own decisions.
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