The price of bitcoin (BTC) managed to stabilize at the $ 40.000 level. It has now crossed this mark for more than three days and could continue to rise if demand pressure is maintained. It seems that the war started by Russia against Ukraine has stopped frightening cryptocurrency investors, who have once again made their presence felt in the market.
The stability of the bitcoin price indicates that war has become a reality that no longer affects the market. And the same goes for ether (ETH) and other cryptocurrencies. This makes sense considering that Google searches for "war" or "Russia and Ukraine" are down from previous weeks. This suggests that interest in the conflict in Eastern Europe has waned.
This reveals a tense calm among investors that appeared to increase the level of demand for bitcoin, pushing its price higher. Although it is worth noting that the buyers who triggered the hike are not your typical billionaires who are known as "whales".
Interestingly, those driving bitcoin's price upward are small, new investors. This was indicated by analyst Will Clemente, who commented that the offer continues to be absorbed by entities with a low statistical record of spending in BTC.
The cryptocurrency market is at record levels of correlation
Correlations in the cryptocurrency market are nearing all-time highs, digital asset researcher Arcane Research reported on March 18. This is seen in the constant and similar increase experienced by Bitcoin, Ethereum and the broad spectrum of cryptocurrencies over the past few months.
Over the past ninety days, the cryptocurrency market has been approaching the correlation highs that were seen in the bearish movements of 2018 and 2019. Although, unlike that time, they are now making an upward movement. Arcane Research says this paints a picture of an overall sentiment of risk aversion in the market.
The analyst Willy Woo warned in a report that the market continues to show what appear to be the first signs of a sea change. He said: "It has now been confirmed that demand is back and, more importantly, the long-term futures markets are showing strong signs of a sell-to-buy reversal."
Willy Woo argues that the data indicates that we are in the context of an upturn in demand. He estimates that the price of bitcoin will continue with limited downward movements over the next few days.
It also clarifies that if the demand and low volatility continue, there is a high probability of a bullish breakout within the next two weeks. This would mean the end of the bear market and a rise in the price of bitcoin. This should be confirmed by the data presented in the coming days.