Bitcoin dropped below $42,500 level amid growing economic uncertainty tied to Russia’s unprovoked invasion of Ukraine and the Federal Reserve’s imminent hike in interest rates. Many altcoins suffered losses including Ethereum, XRP, Polkadot, Aave, Solana and Cardano.
Earlier today, the price of Bitcoin was $42. 3K, down slightly for the day. ETH, the second-largest crypto by market cap, also declined a fraction over the weekend and was trading around $3.2K. XRP, Polkadot, Cardano, BNB, Solana were all down by more than 2%.
Price action
Earlier this month, the flagship crypto started trading near $47K after a surge in March, fueled by optimism about an early solution to the conflict in Ukraine.
The 200-day moving average historically serves as both a reliable support and a significant resistance level during Bitcoins bull markets.
Following the price action of the bearish flag pattern and the 200-day moving average, Bitcoin has finally been rejected and is trading at lower prices.
Bitcoin’s 100-day moving average, which is now at $41.6K on the daily chart, is another significant support.
A failure to break above the bearish continuation flag pattern would suggest a major bearish turn, possibly implying a price decline below $40K.
Fundamentals
Recently, cryptos’ performance has largely paralleled that of the stock market, which has also declined. Nasdaq, which focuses on technology, closed Friday with a loss of over one percent.
Similarly, the S&P 500 and Dow Jones Industrial Average fell as investors processed a historic swirl of events that could lead to a global economic crisis.
The weekend saw Ukraine prepare for another Russian offensive on cities in the southeast while also evacuating civilians, who have been targeted by Russian forces.
Despite the continent’s largest economy, Germany, opposing the measure as it would send shockwaves through its economy, E.U. nations continue to discuss banning Russian oil and gas.
Brent oil continued to hover slightly around $100 per barrel, up over 40% from the beginning of the year.
