Max E.Fri, Feb 18, 2022 4:10 PM
Bitcoin (BTC): 18 February Price Digest
On Feb. 18th, the cryptocurrency market continued to fall alongside most U.S. tech stocks as fear resumes among investors amid escalating tensions between Russia and Ukraine. While fears of a sharper Fed rate hike have faded into the background, investor speculation on the future direction of the market continues, as monetary policy tightens.
The prospect of a dialogue between the US and Russian authorities next week somewhat eased the fears and momentary pressure from stock market sellers but this does not apply to the crypto market. The global cryptocurrency market capitalization fell by 4.71% to $1.90 trillion over the last 24 hours.
The price of the first cryptocurrency, Bitcoin, has been falling starting February 17, and by Friday morning fell below the resistance level of $41K. Over the past day, the asset has fallen in price by 5.85%. At the time of writing, Bitcoin is trading at $40,817.99.
Lower support levels of $38K and $40K are expected to mitigate the negative impact as macro conditions continue to deteriorate. However, some on-chain indicators still offer a glimmer of hope. The Illiquid Supply Shock (ISS) Ratio chart, showing the ratio between the number of “strong hands” and the rest of the supply, has recorded a new high compared to April 2021.
This rise suggests that BTC holders, who did not sell off their holdings in October and November of last year, are now setting new highs in the market, which is good for both BTC and the rest of the crypto market in the long term. In fact, only BTC coins bought in the first half of 2021 are currently being tested due to their base price ranging from $45K to $55K. As for the "hodlers", most of them are still confidently holding their savings.