Bitcoin spikes above $40K as Russia sees 'positive shifts' in Ukraine war dialogue

Bitcoin (BTC) saw instant volatility connected March 11 amid anticipation that the Russia-Ukraine struggle could find a diplomatic solution.

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

Hope rises — but truthful bash Bitfinex shorts

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD concisely surging $1,400 earlier reversing to consolidate beneath $40,000 Friday.

The determination followed caller comments from Russian President Vladimir Putin, who successful a gathering with Belarusian counterpart Aleksandr Lukashenko said that determination had been "positive shifts" successful the Ukraine dynamic.

"There are definite affirmative shifts, negotiators connected our broadside archer me," helium said, quoted by Reuters and others.

Bitcoin, already known for not "liking" escalations successful equipped conflicts, instantly rebounded successful enactment with European and U.S. banal markets. Germany's DAX bounced 2.6% connected the news, portion S&P 500 futures were up 1.1% earlier the Wall Street open.

At the clip of writing, volatility remained connected BTC/USD, with bulls attempting to ace $40,000 absorption much convincingly.

Previously, however, warnings had travel from those watching rapidly mounting shorts connected large speech Bitfinex — a classical motion that short-timeframe downside should beryllium imminent.

These were inactive climbing astatine the clip of writing, disposable connected some regular and little timeframes and astatine their highest levels since July 2021.

BTC/USD shorts 1-day candle illustration (Bitfinex). Source: TradingView

The propulsion to $40,200 section highs caused a mean liquidation of abbreviated positions connected derivatives platforms, data from monitoring assets Coinglass showed.

Crypto liquidations chart. Source: Coinglass

Traders stay cool

Bitcoin inactive remained abbreviated of the precocious extremity of its established trading range, with the country northbound of $42,000 proving intolerable to clasp for agelong passim 2022.

Related: Buying big? Nearly 30K BTC leaves Coinbase Pro successful 3 transactions

The latest terms enactment was a boon for immoderate traders, however, with fashionable Twitter relationship Anbessa telling followers that each was going according to plan.

Fellow trader Pierre meantime highlighted a rising enactment wedge that bulls should ideally sphere going forward.