Against the background of the Russian invasion of the territory of Ukraine, bitcoin has gained bullish potential and as of March 4 is near the final resistance area. Unprecedented interest in cryptocurrency for the CIS was caused by a flood of European sanctions that drove the Russian economy into an immense pit.
However, billionaire Bill Miller believes that the current situation can have a positive impact on Bitcoin. The billionaire investor said that Russia keeps most of its reserves in the US dollar, euro, and other currencies, access to which will now be closed. According to the investor, the country's authorities can create the prerequisites for a powerful bullish rally of Bitcoin by converting their reserve into cryptocurrency.
In theory, such an adventure could work if the sanctions of Europe and the United States were not comprehensive. The West is preparing a package of sanctions that will also hit the cryptocurrency market. Many crypto platforms around the world are beginning to block the registration of Russian users, and existing ones restrict access to withdrawals.
In addition, the analytical company ChainAnalysis stated that as of March 4, trading volumes in the Russian segment of the crypto market reached a local minimum. Moreover, the overall activity of acquiring cryptocurrencies in Russia remains at a low level. According to data on March 3, buying activity on the crypto market in rubles reached only $ 34 million, which is almost 5 times less than in 2021. This suggests that local activity at the end of February did not acquire the character of a long-term trend in investing in digital assets.
Europe continues to put pressure on the Russian Federation with sanctions and will soon discuss the issue of increased regulation of cryptocurrencies. The EU Finance Minister discussed with colleagues the possibility of using digital assets to circumvent sanctions. The finance ministers of European countries and the United States are preparing an updated package of sanctions to block the ability of the Russian Federation to use cryptocurrencies to circumvent existing restrictions.
However, even without the help of the Russian military invasion of the territory of Ukraine, Bitcoin has a chance to continue its upward movement. As of March 4, the cryptocurrency has declined to a key support area of around $ 40.7k. The technical indicators of the asset maintain a downward trend but are in bullish areas. The MACD continues to move in the green zone above the zero mark, and the RSI acquires a sideways movement. Stochastic continues to decline but is in a bullish zone.
This is an important signal of increased bear activity above $ 45k. But it is important to note that the price has confidently rebounded from $ 40.7k, and therefore in the near future we should expect a local reversal and an attempt to break through at $ 44.6k. In this case, the inverted "head and shoulders" figure will be completed, and Bitcoin will begin to realize a bullish momentum up to $ 54k. But even with a favorable scenario, many limiting factors will not allow Bitcoin to reach new highs.
