Bitcoin, Ethereum, Dogecoin Slump Amid Ukraine Crisis But There Are Bullish Signals Ahead Of Valentine's Day

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Bitcoin and other major cryptocurrencies traded lower on the eve of St. Valentine’s Day as the global cryptocurrency market cap fell 2.2% to $2 trillion. ​​

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -0.85% 0.75% $42,099.24
Ethereum ETH/USD -2.4% -4.5% $2,870.20
Dogecoin DOGE/USD 2.5% -4.3% $0.15
Top 24-Hour Gainers (Data via CoinGecko)
Cryptocurrency 24-Hour % Change (+/-) Price
Theta Network (THETA) +26.9% $4.26
Theta Fuel (TFUEL) +9.3% ​​$0.225
Celsius (CEL) +5.8% $3.42

See Also: How To Buy Bitcoin (BTC) 

Why It Matters: Bitcoin and other major cryptocurrencies remained under pressure due to the crisis brewing in Ukraine and the high U.S. inflation numbers released last week.

The dollar index — a measure of the greenback’s strength against a basket of six international currencies — rose 0.27% to $96.04 on Friday after the United States said Russia had amassed troops on the Ukrainian border to launch an invasion, according to a Reuters report

Cryptocurrency trader Justin Bennett said that he was waiting for the dollar index to flash an “engulfing pattern.” This is a pattern that is made up of a smaller green candlestick followed by a large red candlestick that overshadows the smaller candlestick. It signals a downtrend.

In a separate video, Bennett explained ± using a chart that tracked the movements of Bitcoin and the dollar index over time — that every time Bitcoin has topped out at the end of each bull cycle,  the dollar index has bottomed.

On Friday, Ethereum’s Russian-Canadian co-founder Vitalik Buterin tweeted in Russian that an attack on Ukraine could “only harm Russia, Ukraine and humanity.”

Edward Moya, a senior market analyst with OANDA noted that Bitcoin falling down on Russia-Ukraine news was not an isolated event — the same downward movement was also mirrored in other risky assets. 

On Friday, the S&P500 and Nasdaq closed 1.9% and 2.78% lower at 4,418.64 and 13,791.15.

“This is a minor setback in the cryptocurrency market rebound and should confirm the consolidation pattern that was forming,” said Moya in a note, seen by Benzinga. 

Meanwhile, a key metric indicates that bitcoins are being held instead of being traded, which could be construed as bullish. Glassnode data shows that the amount of Bitcoin supply last active (1-year - 2-year) has reached a 14-month high of 3.02 million BTC.

Amount Of Bitcoin Supply Last Active 1y-2y (Hour Chart, 1-Day Moving Average) — Courtesy Glassnode

Read Next: Bitcoin Breaks Above An Important Resistance Level And Rips: What's Next?

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