Bitcoin price spike to $39K leads traders to say ‘the panic is over for a few days’

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The global financial and cryptocurrency markets have been shut down for the past 24 hours as the invasion of Russian troops into Ukraine sparked a race among investors and sales of most asset classes.

Data from Cointelegraph Markets Pro and TradingView shows that the price of bitcoin (BTC) hit a low of $34,333 in the opening hours of Feb. 24, shortly after the start of the intervention in Ukraine, and has since risen back to $38,500 after a short period of time. . Expected – stress could bring bearish investors to their knees.

1-day BTC/USDT chart. Source: Trading View
Here’s what many analysts have to say about the price of BTC and how the ongoing struggle could affect the cryptocurrency markets in the short term.

Bitcoin in a “fantastic shopping district”
Bitcoin’s crash on the night of Feb. 23 was not unexpected by most traders, and according to crypto trader Pentosha, BTC’s price could rebound to the $40,000 mark in the short term.

Three-day chart for BTC/USD. Source: Twitter
Despite these positive outlooks, Bentoshi expressed caution about a “general macro environment” that “feels pretty dire”.

In a follow-up tweet on Feb. 24, Bentoshi insisted that bitcoin would eventually trade higher.

Bentoshi Sa,

“BTC is now in the blue value zone. Not exactly the way I was hoping to get here. I think over time it will become a great shopping area.”
A softer correction than in May 2021.
A deeper assessment of the current situation was provided by David Lifshitz, CEO and Chief Investment Officer of ExoAlpha, who noted that “Bitcoin and other cryptocurrencies moved up and down in line with the Russian/Ukrainian news” and then plunged into cryptocurrencies and other assets that were expected after “the first strikes, albeit surgical ones, against Ukraine.”

On a positive note for the crypto market, the impact on gaming has been less than during the May 2021 downturn, resulting in “less liquidation of overleveraged players and therefore a more moderate correction compared to what was seen.” in May”.

Lifshitz pointed to the fact that Bitcoin’s recent low of $34,300 “was close to the lowest range it’s been in for weeks” and suggested that “the direction of Bitcoin and other cryptocurrencies will be determined by what happens in the future.” the next few days with the situation in Ukraine and Russia. “.

Regardless of the short-term consequences of this conflict, Lifshitz stated: “The elephant in the room is the central bank raising interest rates, which is not as difficult as it should be to contain inflation, but it will be enough to apply more pressure. at the central bank. Economy and stock market. “.

Lifshitz said,

“There has been a hard landing over the past 12 years due to the loose monetary policy of central banks, and perhaps Ukraine and Russia were just a key element that was looking for an “alternative bubble”…”
Related: Bitcoin soars above $36,000 as 24-hour cryptocurrency tops $500 million

The first panic is over
Giving a final glimpse of how the market will trade in the coming days and weeks, independent market analyst and analyst Michael van de Poppe posted the following tweet saying the worst short-term weakness may be behind us.

An analysis of what happens next for BTC if the panic continues was provided by crypto trader and Twitter user AngeloDOGE, who posted the following tweet referring to $25,000 support if the bears break the $33,000 level.

The total cryptocurrency market capitalization is currently $1.66 trillion and the Bitcoin dominance rate is 41.9%.

Source: CoinTelegraph

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