Bitcoin price dips below $38K as crypto sentiment nears ‘extreme fear’

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Bitcoin (BTC) fell below $38,000 for the first time in over two weeks on February 20 as macro triggers hit the weekend markets.

Hourly BTC/USD light chart (Bit Mark). Source: Trading View
BTC Trader: ‘No need to worry’
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD lost ground on Sunday after threats of fresh sanctions against Russia over their alleged plans to invade neighboring Ukraine.

After a quiet Saturday, the cryptocurrency began to decline after British Prime Minister Boris Johnson’s comments on the financial blocks of Russian companies in case the situation worsens.

Johnson told the BBC on Sunday morning that they would be banned from “trading in pounds and dollars”, citing the support of US President Joe Biden.

With cryptocurrencies the only permanently open markets, the reaction to geopolitical concerns in the region could portend a more contagious effect next week when traditional markets open. Monday is a holiday on Wall Street.

Commenting on the situation, Mike McGlone, chief commodity strategist at Bloomberg Intelligence, also drew attention to the lingering issue of inflation and its relationship to the performance of risky assets.

However, in line with previous comments, he suggested that Bitcoin could eventually benefit from a change in US economic policy this year.

“Bitcoin heralds a tough week – inflation is unlikely to ease unless risky assets go down: most assets are subject to a 2022 downturn due to the imminent lifting of the largest inflationary measures in four decades, but this year could be another milestone for Bitcoin,” he declared.

Among bitcoin traders, the short time frame is now quite charming, with a $40K loss weighing on sentiment.

BTC/USD bottomed at $37,974 on Bitstamp on Sunday before bouncing back to the $38,000 mark.

Intense fear of death
Meanwhile, others continue to focus on the importance of $40,000 in the history of bitcoin prices.

Related: Bitcoin idle supply near record as over 60% of bitcoin remains unused for at least one year

Since it was first used in 2021, this level has served as a springboard for bulls, and for the popular Mayne Twitter account, restoring should be the first step to ensuring growth.

“Over the past year, the $40K level has been critical for Bitcoin. Every time the price goes down and then bounces back, we see a big bullish move. Maybe a good area to watch now,” he commented. .

Meanwhile, more losses seemed to be what the fans had expected. The Crypto Fear & Greed Indicator returned to its ‘fear’ territory on the same day, after dropping more than 50% in just four days after entering ‘extreme fear’.

Source: CoinTelegraph

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