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Bitcoin Can Crush Russian Ruble By Gaining Another 140%, Classic Technical Setup Shows

Bitcoin (BTC) has dropped by about 30% after topping out at 5.8 million rubles a token on March 9. The aforementioned drop, however, could be an excuse for other large traders to dump the stock. Russian national currency if the classic bullish continuation pattern plays out.

Bitcoin towards 11 million rubles

Dubbed “ascending triangle“the pattern occurs when price consolidates between a bullish lower trendline (support) and a flat upper trendline (resistance). It completes after the price breaks out of the consolidation range in the direction of the previous trend.”) then, the observation levels are of equal length up to the maximum distance between the upper and lower trend lines of the triangle.

The price of BTC against the ruble has been trending in a similar structure since January 2021, as shown in the chart below. It closed above the upper trendline of the triangle, rallying more than 20% to an all-time high of 5.88 million rubles.

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BTC/RUB weekly price chart has an “ascending triangle” setup. Source: TradingView

However, BTC corrected to test the resistance of the range as support, a common sight after breakouts as traders look for confirmation of the pattern with more upside.

If that is the case, the possibility of a recovery and a continuation to the level of 11 million rubles appears high in the future, an increase of almost 140%.

Control the capital of Russia

The technically bullish outlook for the BTC/RUB market also comes amid an ongoing wave of migration out of Russian assets since Russia invaded Ukraine, as Western nations did cooperate damage the country’s relationship with the global banking system.

As a result, Moscow Exchange has suspended trading from February 28 until further notice. Similarly, shares of Russian-backed companies abroad have been affected, with the MSCI index that tracks their exchange-traded funds reporting an outflow of nearly 78% since the invasion began. on February 24th.

Related: Allies or doubts? War in Ukraine as a stress test for the crypto industry

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Weekly price chart of iShares MSCI Russia ETF. Source: TradingView

As of March 7, the ruble is down more than 50% year-to-date against the US dollar, its biggest drop since 1998 when Russia defaulted on its debt. The central bank of Russia intervened through a sequence of capital control measuress, including a six-month ban on foreign currency sales.

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