A few hours ago, Bitcoin attempted to break the $17,000 barrier but was stopped by the release of UK inflation figures. Most alternative cryptocurrencies are also slightly down today. SBF, the former CEO of FTX, has been venting on Twitter about how he plans to make customers whole and how he plans to revive his cryptocurrency businesses.
Bitcoin is currently trading at $16,740 after starting the day at $16,886. It has hit a high of $17,002 and a low of $16,761.
The recent Russia-Ukraine conflict has caused a drop in the cryptocurrency market. Let us take a look.
Ukraine Conflict Escalation Fears Send Prices Lower
The main worry about the war in Ukraine is that it may escalate into a larger confrontation between Moscow and the US-led NATO alliance. The fatal missile strike on a Polish village on the Ukrainian border has clarified that fear.
At 3:40 p.m. on Tuesday, a missile hit Przewodów, a town in southeastern Poland not far from Ukraine’s border, killing two reportedly farm laborers, according to the local media.
Since Russian President Vladimir Putin authorized a full-scale invasion of Ukraine on February 24, this region of Poland has been living with the war. Millions of refugees have used its routes to leave the fighting, and western military equipment worth billions of dollars has been shipped to Ukraine to help its people fight back.
The bombing on Tuesday carried the battle for the first time into Polish territory, highlighting how close Europe is to a confrontation between the world’s two strongest nuclear powers.
Accusations were leveled at each other in the first, tumultuous aftermath of the occurrence. Explosions were reportedly triggered by Russian missiles that had crossed into Poland, according to the Associated Press, which cited an anonymous senior US intelligence officer. But the threads of that explanation started to fray.
As a result, the safe-haven appeal has increased and risk-off market sentiment has increased, increasing demand for gold and driving a sell-off in the stock and cryptocurrency markets.
Producer Pricing Index (PPI) Report
According to the Labor Department’s report released on November 15, the cost of wholesale products, excluding food and energy, has decreased. The trend may be due to improved supply chains and slowed demand caused by higher borrowing rates. It reinforces economists’ claims that the prices of goods had started to decline.
The producer pricing index (PPI) also indicated a slowing in inflation. The 0.6% increase in the cost of final-demand items was reportedly responsible for the increase in PPI excluding food, energy, and trade services. In October, the PPI increased by 0.2%, less than the 0.4% consensus estimate, and annual prices fell from 8.4% to 8.0%.
As a result of lower-than-expected PPI data, the crypto market has risen, and prices have increased. BTC/USD started to increase in value shortly after the announcement. The crypto market has risen and prices have risen as a result of lower-than-expected PPI data. Shortly after the announcement, the value of BTC/USD began to rise.
Crypto Prices Gains Support as US Dollar Cools Down
After a parabolic rise throughout 2022, the US dollar index is beginning to show signs of cooling. The most recent CPI and PPI data showed the Fed making significant progress in controlling out-of-control inflation. Although momentum may have slowed since the US dollar index (DXY) recently reached levels not seen since 2002.
If everything went as planned, investors would see a falling DXY as a reason to increase their exposure to risky assets such as cryptocurrencies.
At the time of writing, the DXY was 106, down 0.25% in 24 hours and over 4% in 5 days. Meanwhile, DXY has been under pressure, and its decline has coincided with an increase in Bitcoin and other cryptocurrencies.
Historically, a drop in the DXY corresponds to a reversal in the direction of the price of bitcoin. It indicated that BTC/USD is rising due to the declining value of the US dollar.
SEC Delays Decision on ARK 21Shares Spot Bitcoin ETF
The United States Securities and Exchange Commission (SEC) has extended the deadline for deciding whether shares of ARK 21Shares’ Bitcoin exchange-traded fund should be listed on the Chicago Board Options Exchange BZX Exchange.
It postponed the decision on whether to approve ARK Invest, a stock-picking firm run by Cathie Wood, to offer a spot bitcoin exchange-traded fund until January 27, 2023.
On May 13, ARK 21Shares submitted the Bitcoin (BTC) ETF application to the federal regulator for the first time. On November 15, the SEC announced that the designation period would be extended.
This year, the market regulator has rejected numerous proposals for bitcoin-tracking ETFs, including those from Grayscale, Fidelity, and NYDIG. As a result, the decision on the ARK 21Shares Bitcoin ETF has been delayed.
Bitcoin Price Prediction
The current price of one bitcoin is $16,649, with a 24-hour trading volume of $34 billion. Bitcoin has dropped over 1% in the last day and currently holds a market value of $349 billion. There are now 19,208,200 BTC coins in circulation, with a maximum of 21,000,000 BTC coins.
Bitcoin’s technical outlook hasn’t changed much, as it’s still trading exactly in line with our previous Bitcoin price prediction.
Bitcoin is consolidating in a wide trading range between $16,000 and $17,200, with a breakout determining future price action. Bitcoin has completed a 38.2% Fibonacci retracement at the $18,100 level in the 4-hour timeframe and has now dropped below the 23.6% Fibonacci level of $17,250.
On the downside, Bitcoin’s immediate support is at $17,250, and a bearish trend continuation could push the price down to the $15,850 support level. Because the RSI and 50-day moving average are indicating a bearish bias, we may see the BTC price fall to $15,850 or even lower upon a bearish breakout to the $14,500 support zone.
The MACD, on the other hand, is in a buying zone, but the most recent histograms are shrinking, indicating a weakening bullish bias. Having said that, selling can be seen today below the $17,250 level.
Increased demand for BTC, on the other hand, has the potential to cut through $17,250 resistance and push the BTC/USD price to $18,250 or $19,335 levels.
Top Crypto Coins on Pre-Sale
Dash 2 Trade (D2T)
Dash 2 Trade is an Ethereum-based trading intelligence platform that provides traders of all skill levels with real-time analytics and social data, allowing them to make more informed decisions.
It began its token sale three weeks ago and has since raised over $6.3 million. It has also confirmed its first CEX listing on LBank exchange.
1 D2T is currently worth 0.0513 USDT, but this is expected to rise to $0.0533 in the next stage of sales and $0.0662 in the final stage.
Calvaria is a new cryptocurrency gaming project with the potential to dominate the play-to-earn market. Calvaria developers have identified two major barriers to widespread Web3 gaming adoption. While investors see Web3 games’ potential, users do not.
Calvaria’s presale is gaining traction, with the project already in stage 4 of 10 and close to $1.7 million in funding.
As the price of the native RIA token rises significantly at each presale stage, investors are flocking to the rapidly growing GameFi project.
In stage 4, tokens cost $0.025 each, but by stage 5, the price had risen to $0.03, and tokens cost $0.055 in stage 10.
TARO is another project that has the potential to change the gaming community and the virtual world. The asset’s presale has only recently begun, but there is already considerable interest from prospective buyers.
RobotEra is a blockchain-based metaverse where users can create avatars and explore a digital world, and the platform’s native token is TARO. In RobotEra, players can purchase land, build on it, and expand their regions with various infrastructures.
The goal is to create a metaverse in which everyone is comfortable with their personal property holdings. Furthermore, RobotEra has a shared metaverse where users can engage in a variety of activities such as sports, concerts, and other competitive events.
The first stage of TARO’s presale is now live, and it is quickly selling out.