Global financial markets and crypto markets took a beating over the past 24 hours as the invasion of Ukraine by Russian forces sent investors scrambling and sold-off across most asset classes.
The data from Cointelegraph Markets Pro and TradingView show that the price of Bitcoin (BTC) hit a low of $34,333 in the early trading hours of Feb. 24, shortly after the Ukraine raid began, and has since risen back to $38,500 after an unexpected event. the short-squeeze may have hit bear investors in the knuckles.
Here is a look at what various analysts are saying about the price of BTC and how the ongoing conflict could affect the crypto markets in the short term.
BTC in a “big buy area”
The crash of Bitcoin on the night of February 23 was not unexpected for most traders and according to crypto trader Pentoshi, the price of BTC could reclaim the $40,000 mark in the short term.
Despite this positive outlook, Pentoshi expressed caution “for the general macroeconomic environment”, which “looks quite dire”.
In a follow-up tweet on Feb. 24, Pentoshi stood firm with the projection that BTC will eventually trade higher from here.
“BTC now in the blue value zone. Not exactly the path I was hoping to take to get here. I think over time this will have been a great buying area.”
A milder correction than that seen in May 2021
David Lifchitz, managing director and chief investment officer at ExoAlpha, offered a deeper assessment of the current situation, noting that “Bitcoin and other cryptocurrencies have been moving up and down along with the Russia/Ukraine news,” per what The drop in cryptocurrencies and other assets was expected after “the first attacks, including surgical ones, in Ukraine.”
A silver lining for the crypto market was that there was less leverage at play than during the May 2021 halving, resulting in “less liquidation of over-leveraged players and thus a milder correction compared to what was seen.” in May”.
Lifchitz pointed to the fact that Bitcoin’s recent low of $34,300 “was near the low of the range it’s been stuck in for weeks,” and suggested that “the direction of Bitcoin and other cryptocurrencies will be driven by what happens in the future.” next two days with the Ukraine-Russia situation”.
Aside from the short-term impact of this conflict, Lifchitz stated that “the elephant in the room is central bank rate hikes that will not be as harsh as they should be to tame inflation, but will be enough to put more pressure on the economy. and the stock market.
“A hard landing of the last 12 years of loose monetary policy by central banks is underway, and Ukraine-Russia may have been the pin that the ‘everything bubble’ was looking for…”
The initial panic has passed
Independent analyst Michaël van de Poppe has given a final glimpse into how the market will trade in the coming days and weeks, posting the following tweet suggesting that the worst of the short-term weakness may be over by now.
honest view; panic is over for a few days/maybe weeks.
Potentially runs of 20-45% on #altcoins to happen.
— Michael van de Poppe (@CryptoMichNL) February 24, 2022
Analysis of what’s next for BTC if the panic continues was also provided by crypto trader and pseudonymous Twitter user AngeloDOGE, who posted the following tweet noting support at $25,000 in case the bears break the $33,000 level.
low chance #bitcoin holds USD 33k on a second visit.
Sometimes things need to get worse before they can get better.
Upon support failure, $25k USDBTC you eat next.
Hope for the best, prepare for the worst, and stay off the leverage.
— AngeloƉOGE (@AngeloBTC) February 24, 2022
The global cryptocurrency market capitalization now stands at $1.649 trillion and the dominance rate for Bitcoin is 41.9%.
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