Crypto Frontline

BTCUSD (Coinbase)

Source: TradingView

The end of February catches Bitcoin under pressure and now that war in Ukraine broke out, the downside remains favorable. On top of this bearish fundamental background, as risk assets are dumped by market participants, we can also see technical favors sellers.

Bitcoin rejected the key area highlighted on the chart above and that is an early sign of weakness. In case pessimism will dominate next week, expect the price to weaken towards the January lows. A breakout below that will expose the $30k support area.

We reiterated for months that Bitcoin is on its way down towards that zone and now there are not even slight changes of price action context. Buyers looking to get long should remain patient, as the focus will turn on harsher sanctions imposed on Russia and any potential retaliation that could follow after that.

Only a breakout above the highlighted zone can revive some hopes Bitcoin can push back towards $44k. Remember that sellers might be using any bounce as a new opportunity to short.

ETHUSD (Kraken)

Source: TradingView

Things have not improved for Ether either, considering the price is now being rejected around the daily 20 EMA. At the same time, the token continues to trade below a short-term descending trendline we’ve shown last week, so that keeps the bearish tilt in place.

However, it is yet to be seen whether a new impulsive leg lower will start from here, or the buyers can push the price towards the trend line before getting overwhelmed by sellers. In either of these scenarios, ETH will continue to push towards the key $2k support area.

Despite rising uncertainty and dominating bearish sentiment, a bullish scenario should not be completely ruled out. We advise caution, especially as tensions remain elevated when thinking to buy, but if the price action is pushed above the trend line, the daily 200 SMA will follow next.

In case Ether breaks above the orange line, that will be a technical confirmation the sentiment shifted in favor of the buyers. Right now, unfortunately, that seems to be hard to achieve.

LUNAUSDT (BYBIT)

Source: TradingView

For the past 7 days, LUNA is one of the top-performing major cryptocurrencies, up over 50%. As we can see from the chart, the price broke above a descending trend line and after that, massive bids followed. Momentum has been strong and if it continues, the area around $84 – $88 should be closely monitored.

The broad market sentiment could have an impact next week, especially if the bears will push lower most of the tokens. In that scenario, those that are already long LUNA should at least trim their exposure.

An early sign of weakness would be if the price breaks below the 4h chart 20 EMA. At the same time, the RSI should head towards the oversold area. It’s too early to call a temporary top, given there have been massive inflows into LUNA over the past week. Still, buyers should remain active to keep the trend in play. Thus far crypto as a whole turned out to be a poor hedge during times of uncertainty.