Bitcoin Stagnates at $20k as E.U. Sanctions Russia-linked Crypto Wallets

Bitcoin Stagnates at $20k as E.U. Sanctions Russia-linked Crypto Wallets

Bitcoin prices are slowing down when writing. Buyers are struggling to print higher highs, and prices are hovering around the $20k zone.

The technical candlestick arrangement in the daily chart favors buyers. However, the failure of prices to print higher highs and confirm gains of October 4 points to low participation from bulls.

Subsequently, while there are odds of BTC rallying in the days ahead, conservative traders can play safe by waiting for a clear trend definition in the sessions ahead.

The European Union Imposes More Sanctions on Russia

Hindering factors preventing buyers from accumulation has to do with emerging developments in Europe. The ongoing conflict with Ukraine has forced the European Union (E.U.) to take strict measures against Russia.

The latest news on October 6 shows that the union has announced new sanctions on Russia. This time, the E.U. is banning all Russian wallets and accounts from interacting with E.U. service providers.

The bloc has tightened previous rules, limiting crypto payments to European providers to around $9,900.

Following approvals by European governments, the E.U. issued a statement. An extract read:

The existing prohibitions on crypto assets have been tightened by banning all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet (previously up to €10,000 was allowed).”

Bitcoin Price Analysis

Bitcoin BTC Daily chart for October 7

At spot rates, Bitcoin is trading above $20k, in range and fluctuating inside a narrow price zone in the past 72 hours. Technically, BTC is within a bullish breakout formation following encouraging gains above $20k on October 3.

While traders are optimistic, even accumulating at spot rates in anticipation of more gains, the failure of buyers to follow through points to unconvinced bulls, apprehensive of the immediate trend for BTC. Nonetheless, provided prices are trading above $18k and prices oscillating within the October 3 and 4 bull bars, buyers have the upper hand from an effort versus result perspective.

As they accumulate, aligning their positions with the emerging weeks and buyers early this week, their targets will be at $22.5k and later $25k. Any loss below $18k will invalidate this preview, drawing sellers aiming at $17.5k in a bear trend continuation formation.

Technical charts courtesy of Trading View.

Disclaimer: Opinions expressed are not investment advice. Do your research.

If you found this article interesting, here you can find more  Bitcoin news.