The situation with Bitcoin prices is pretty much unpredictable with such fluctuations that have been going on in the market. Hence, the investors of Bitcoin are more relying on the analysis and reports that come from the big analysis firms. Well, according to the best news site for cryptocurrency, there are more shocks awaiting the people who have made an investment in Bitcoin.
A cataclysmic breakdown related to the global equities isn’t yet off the table for this particular year since there is a shock that is already in the making for Bitcoin users. BTC or Bitcoin has headed lower into the weekly close that took place on the 6th of March with certain geopolitical tensions as well as the macro weaknesses that were associated with the firms.
Could 2022 Be the Year When Bitcoin Reaches “Greater Depression”?
Certain collections of data and information from different analysis firms actually show that the BTC/USD levels have been hitting the lowest marks this week just after the volatility returned in a single night. This particular pair was basically in the process of properly testing the support of $38000 and this is when the three-day losses were amounting to about 12% in total.
Despite having an out-of-hours environment for trading, the trend for Bitcoin was pretty much down. This was due to the fact that the mood-related to certain global equities was wobbling amongst different analysts.
“Global equities have lost $2.9tn in market cap this week as war could trigger major stagflationary shock,” Holger Zschaepitz who is a markets commentator gave us a warning on that particular day. “Economists cut their growth forecasts & raise inflation projections. Global stock markets now worth $110tn, equal to 130% of global GDP, which looks expensive for the current situation.”
Should a bigger TradFi correction set in an already shaky crypto market could fare just as badly, some argue — at least to begin with. Pentoshi, who is a very popular trade as well as analyst for Bitcoin even went on to forecast that the worldwide meltdown situation that took place 90 years ago which led to the Great Depression might be repeated in the case of Bitcoin.
Some of the established analysts of Bitcoin have actually taken a different stance in this case. In the latest market outlook of cryptocurrency, a report was published by Bloomberg that had some positive things about Bitcoin and Ethereum.
“Most assets are subject to the ebbing tide in 2022, on the inevitable reversion of the highest inflation in four decades, but this year may mark another milestone for Bitcoin,” it read. “If risk assets don’t decline and reduce some of the price pressure, inflation measures are more likely to remain buoyant, leaving few options for central banks but to raise rates more aggressively.”
Also Read: The 4 Reasons Bitcoin Is Rallying, According to a Market Strategist — “the Ukraine Crisis Reveals that Bitcoin Can Serve as a Support System
$36,000 Support Might Be Incoming for Bitcoin
With the trepidation still having a hold over the roost short term, when it comes to the outlook related to Bitcoin, there might be some bullish cues. This puts a major focus on the continuing of the cryptocurrency in the trading range that we are seeing today.
“Bitcoin is at a critical level,” Yann Allemann and Jan Happel, co-founders of on-chain analytics firm Glassnode, summarized while introducing the latest edition of its “Uncharted” newsletter. “RSI is oversold and trending up. If the price fails to break above $40k, we go down to support.
Support: $34-$36k Resistance: $43-$45k.” According to the best news site for cryptocurrency, a historically good value BTC/USD was shown at current prices and the correlation between such RSI lows and price reversals.
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