Bitcoin consolidates after $40K surge as analyst eyes weekly higher low for BTC price

Altcoins

Bitcoin (BTC) began a nervous weekend at around $39,000 on Feb. 26 after an overnight spike briefly saw $40,000 return.

Stocks gains but crypto “fear” pervades

Data from Cointelegraph Markets Pro and TradingView revealed calmer conditions for BTC/USD Saturday after overnight volatility saw highs of $40,330 on Bitstamp.

With traditional markets closed, the probability of “fakeout” moves up or down was elevated thanks to thinner weekend volumes on crypto markets.

The geopolitical turmoil focused on Ukraine and occupier Russia formed the backdrop for continued cautious sentiment, amid concerns that Monday, in particular, could bring fresh instability.

The Crypto Fear & Greed Index, while inching up towards the end of the week, remained in the low “fear” zone at 26/100.

A potential silver lining for Bitcoin bulls meanwhile came from the weekly chart. With its recent $34,300 low on the Ukraine invasion, BTC nonetheless managed to put in a higher low versus January’s $32,800 dip.

Should that hold, trader and analyst Rekt Capital believed, February’s comedown from $45,500 would most likely turn out to have been a “necessary” consolidation move.

Macro markets meanwhile ended the week on a high, with significant rebounds for both European and U.S. indices.

The U.S. dollar, which had surged in strength as hostilities began, gave back most of its gains, with the U.S. dollar currency index (DXY) returning to 96.5 from highs of 97.7.

LUNA leads top ten altcoins higher

Altcoins provided a mixed but still overall strong picture Saturday, major tokens led by Terra (LUNA), up almost 50% in a week.

Related: Price analysis 2/25: BTC, ETH, BNB, XRP, ADA, SOL, AVAX, LUNA, DOGE, DOT

With Bitcoin cooling, some late gains were still playing out, including for XRP, which was 10.3% higher over the 24 hours to the time of writing.

Ether (ETH), the largest altcoin by market cap, traded above $2,750 on the back of 5.6% daily gains, having sought to challenge $2,900 overnight.

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