Bitcoin Tracks $39K Ahead of European Vote on Proof-of-Work Legality

Bitcoin (BTC) held steady at $39,000 until Wall Street’s close on Monday, as stocks took the opportunity to recoup some losses.

BTC/USD 1-hour candlestick chart (bit stamp). Source: TradingView

Bulls have “miracle” to recover $40,600

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD remained unmoved at the opening bell on March 14.

The pair had recovered from a last-minute comedown in Sunday’s weekly close to avoid a deeper retracement so far.

However, the week would present many potential challenges for Taurus, starting with a European vote to ban Proof-of-Work algorithm cryptocurrencies on Monday.

However, Wednesday was the main focus, as this was the day the US Federal Reserve was to announce a major rate hike of reportedly 25 basis points.

Geopolitical tensions surrounding Russia’s invasion of Ukraine, along with a resurgence of the coronavirus in China, have meanwhile been added to the list of hurdles.

Traders were thus lax on the immediate outlook, given what the market was in store for. For Crypto Ed, the Fibonacci level of 0.618 around USD 40,400 would form a local high before a deeper retracement occurred.

Only a “miracle” chargeback of $40,600, he said, could yield a bullish result.

Fellow trader and analyst Anbessa meanwhile marked a $37,600 cut-off point for bulls to defend.

On live order book charts, Materail Indicators, on-chain monitoring, signaled further increased selling pressure, appearing at $40,000 Monday.

“New BTCUSDT demand liquidity that just appeared appears to be trying to push the price into the bid ladder below, expecting it to be pulled if the bids are fulfilled,” the account said. commented on a chart showing the changes in the Binance order book.

Bloomberg Analyst: Bitcoin “Cold” Against Oil

On the longer-term side, Bloomberg Intelligence chief strategist Mike McGlone redoubled his view that Bitcoin would eventually emerge stronger from the current turbulence.

Related: Two years since the COVID-19 crash: 5 things to know in Bitcoin this week

Bitcoin, he noted on the day, braved an “ebbing tide” in demand for risky assets by protecting most of its support.

The fact that one of the best-performing and most volatile assets since the financial crisis – Bitcoin – is relatively resilient to an ebb and flow for risky assets in the first quarter may foreshadow crypto’s maturation into digital collateral. in a world heading that way.” he argued next to a chart comparing WTI oil to BTC.

WTI crude oil vs. BTC/USD chart. Source: Mike McGlone/ Twitter

Commodities continued to be the top risers as the week started, while oil futures nevertheless started to cool.