Bitcoin (BTC) fell at the end of the week of March 6 as geopolitical tensions and associated macroeconomic weakness emerged.

BTC/USD 1 day candlestick chart (bit stamp). Source: Trading View
Could 2022 bring the Great Depression?
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit a one-week low on Sunday after volatility returned overnight.

At the time of writing, the pair was testing support at $38,000, with a three-day loss close to 12%.

Despite the “after-hours” trading environment, the trend for the largest cryptocurrency was clearly down as analyst sentiment on global stocks fluctuated.

“Global equities have lost $2.9 trillion this week as war could trigger a massive inflation shock,” market commentator Holger Scheppitz warned on the same day.

“Economists have lowered their growth forecasts and raised their inflation forecasts. Global stock indices are now worth $110 trillion, which is 130% of global GDP, which seems expensive for the current situation.”
Some argue that if a major correction begins for TradFi, the crypto market may already be in a state of turmoil – at least initially.

Even the famous merchant and analyst Bentoshi predicted a repeat of the global crisis that led to the Great Depression 90 years ago.

However, some well-known intellectuals took a completely different position. Bloomberg Intelligence remains positive on Bitcoin and Ether (ETH) in its latest report on the prospects for the cryptocurrency market on March 4.

“Most assets are subject to declines in 2022 due to the imminent return to the highest rate of inflation in four decades, but this year could be another milestone for Bitcoin,” the company said.

“Unless risky assets shrink and some price pressures ease, inflation measures are likely to remain afloat, leaving central banks with few options than to raise interest rates more aggressively.”
$36,000 BTC Support May Activate
With the short-term concerns persisting, Bitcoin’s outlook contained several bullish signals, with an eye on the continuation of the current trading area.

Related: Bitcoin Loses $40,000 as BTC Price Support Levels Move to Weekly Lows

“Bitcoin is at a critical level,” summed up Jan Allemann and Jan Abel, founders of network analytics firm Glassnode, as they reveal the latest edition of their Uncharted newsletter.

“The RSI is oversold and heading higher. If the price does not exceed $40,000, we will fall to the support level. Support: $34-36000. Resistance: $43,000-45000.”

BTC/USD chart with RSI. Source: Negentropic / Twitter
The attached chart shows how well BTC/USD has historically been at current prices, as well as the relationship between RSI lows and price reversals.

Source: CoinTelegraph

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