After markets tumbled due to a lackluster Russia-Ukraine negotiations, Bitcoin (BTC), recovered from its March 8 lows of one week.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Commodities can be traded like meme stocks
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD bounced at $37,170 on Bitstamp following Monday’s Wall Street Open.
Overnight, the pair traded at $38,500 as of this writing.
Stocks and crypto had bad reactions to the end of the third round negotiations to end hostilities between Russia, Ukraine.
“There are very small positive subductions in improving logistics for humanitarian corridors. “Intensive consultations continue on the basic political block regulations along with a ceasefire, security guarantees,” negotiator Mykhailo podolyak nevertheless tweeted the feedback after the talks ended.
However, there was no hope. U.S. stocks declined throughout the session and the S&P 500 ended Monday with 2.95% losses.
Commodities saw spikes that were often unimaginable, like nickel leaping past $100,000 per tonne on the London Metal Exchange.
Commodities trade like meme stocks. Wheat +17%, +75% Year-to-Date pic.twitter.com/04T2h5aRmR
— Dylan LeClair (@DylanLeClair_) March 8, 2022
Russia’s pain did not stop. Only ruble-exposed investors who hedging in BTC saw some relief. BTC/RUB reached new highs of just under 5 million on Binance Monday evening.
BTC/USD 1-day candle charts (Binance). Source: TradingView
Despite the chaos and despite Bitcoin’s inexorable price reaction as a safe-haven that is paradoxically correlated to stocks, there were still votes of confidence from diehard fans.
Marty Bent, founder and CEO of Bitcoin media company TFTC stated that “The world is watching trust get repririced in real-time.”
“Bitcoin will be the largest beneficiary when the dust settles, bc the masses realize that a distributed system cannot be controlled or managed by one person, government, corporation, or coalition is all they can trust.”
The market was also affected by regulatory concerns from the U.S.
Short-term goal: $40,000
Bitcoin was not appealing for short-term trades and the upside potential is very limited.
Related: Three reasons why Bitcoin can rally to $60K even after losing last week’s gains
Popular traders Anbessa, Crypto Ed and Crypto Ed saw $40,000 as a target for a bullish divergence.
#BTC LTF Intraday Update bullish divergence playing out up 3% pic.twitter.com/Gabh2xSF5P
— ANBTCESSA (@Anbessa100) March 7, 2022
Crypto Ed said that “Target can only be defined when the correction is complete, but for now stick with 40k.”
Cointelegraph reported that upcoming events in America, including consumer price index data (CPI) due Thursday, and a decision regarding interest rate rises next week, are likely to disturb sentiment in the short-term.