Bitcoin is trading above $40,000 for the first time since Feb. 20. After posting a 5% gain in the last 24 hours, the leading cryptocurrency is trading at around $41,000.
The price of Bitcoin fell along with the rest of the cryptocurrency market following the Russian invasion that began on February 24. Within the first 24 hours of the conflict, the market value of the entire cryptocurrency market fell nearly 5% to $1.6 trillion.
Now, the cryptocurrency market is rallying as the Western world unites to condemn Russia and tighten sanctions against the country. Just a day after the invasion of Ukraine began, bitcoin rose 7% to over $38,000. Now it's trading above $40,000 again.
The broader cryptocurrency market has also recovered significantly, with a total market capitalization of $1.8 trillion at the time of this writing.
What is the next step?
Arguably, the recovery of leading cryptocurrency Bitcoin has also provided strength to cottage coins. But cottage coins have also fallen more than bitcoin, and the uncertainty over bitcoin's direction has delayed the recovery. Closely following the local cryptocurrency community, @locksmithcrypto also shared his expectations for cottage coins in the coming days as follows.
#Bitcoin’s recent erratic price action has not given confidence that the bottom is very fragile. If the price above 42K lasts for a while, I think we will see a lower price rise. What we need is not a big rise in a short period of time.– Locksmith (@locksmithcrypto) February 28, 2022
Trader @misstraderr, who is closely followed by the domestic cryptocurrency community, drew attention to the importance of the closing price of Bitcoin and made the following assessment.
BTC MONTHLY LAST STATUS #BTC Monthly chart has a bullish pin bar forming… Tonight’s monthly close position will be very important. With the close, we will see if it will continue higher after the doji or if it will test the lower channel again. For now, the market continues to look bullish. pic.twitter.com/TxNSssPret– Misstrader (@misstraderr) February 28, 2022
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Each investment decision is the responsibility of the individual. Finally, Koinfinans and the author of this content are not responsible for individual investment decisions.