Bitcoin rebounded last week but on its way to Fibonacci 38.2 resistance at $46701 reversed down. Current technical setup is bearish. Bitcoin price will continue retreating after breaching below Fibonacci 23.6 support. But I expect it will rebound off the support around $34830 as indicated by yellow rectangle on BTCUSD daily chart below.
While crypto currencies retraced down as their rebound peaked last week, reports that US and European funds increased their Bitcoin holdings , Bitcoin holding by smaller Russian addresses jumped and centralized exchanges will not cut off Russian investors access to crypto currencies markets were bullish developments for crypto currencies markets last week.
With Russia’s armed forces continuing war on Ukraine for the second week now, private investors in Russia have turned to Bitcoin and crypto currencies as a means to preserve their capital after Russian ruble plunged. The supply of Bitcoin held by smaller addresses (0.001 – 10 BTC) underwent a steep uptick last Friday, according to crypto research firm Delphi Digital. And Bitcoin traded at a 40% premium in Russia earlier last week. Delphi’s analysts point to capital flight from the ruble to Bitcoin as a likely reason for such increases.
And while crypto prices in the past week varied in a wide range, Bitcoin holdings of funds and ETFs, as displayed by the chart below, reached all-time high. Crypto holdings of US and Canadian closed-ended funds and Canadian and European exchange-traded funds (ETFs) rose to 851,841 BTC – an increase of nearly 10,000 BTC in four weeks, according to ByteTree Asset Management.
Another bullish development for cryptocurrencies were statements by centralized exchanges and CEOs from companies such as Binance, Coinbase and Kraken that they would only freeze the assets of Russian clients specifically targeted by Western sanctions — not that of everyday Russian users.
