Bitcoin ended the week perched roughly where it spent much of the past few days, a little above $40,000, and with few signs of a rally.
“Last week we shared concerns around Bitcoin’s ability to maintain upward momentum,” Joe DiPasquale, the CEO of fund manager BitBull Capital, wrote in comments to CoinDesk. “We highlighted $40K as the struggling point on the downside and that has been the state of the market this week.”
The largest cryptocurrency by market capitalization was recently trading at about $39,928, a little down from where it stood 24 hours earlier and about the same as where it started the Good Friday, holiday weekend. Ether, the second largest crypto by market cap, was trading at about $3,026, a level from which it has barely budged since last Monday. Other major cryptos were largely in the red, albeit slightly, although SOL was one of the few exceptions rising about 1%.
Trading over the long weekend was light as investors continue to process rising inflation, the possibility of a recession and the latest developments from Russia’s unprovoked invasion of Ukraine. Markets, which were closed Friday, were down on Thursday with the tech-focused Nasdaq off more than 2% and the S&P 500 falling 1.2%.
Russia pressed forward with its attacks on major Ukraine cities, including the capital Kyiv, and demanded the surrender of the strategic Black Sea port of Mariupol to the Southeast. Ukraine Deputy Prime Minister Iryna Vereshchuk said on Sunday that discussions with Russia about establishing humanitarian corridors for civilians to evacuate major Ukraine cities had broken down.
Joe DiPasquale, the CEO of fund manager BitBull was pessimistic about the coming week, noting that support could form well below $40,000. “Things still don’t look particularly bullish for Bitcoin, and we continue to look for a reaction around $37K,” he wrote. “For any upward move, BTC will need to consolidate around $42K in the coming week – an unlikely scenario in the absence of major news or catalysts.”