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Bitcoin on $ 38,000 support

Bitcoin chart analysis

Over the weekend, the price of Bitcoin was under pressure, and we dropped to $ 38,000. As Monday began, the price of Bitcoin began to recover, and we are now above $ 39,000. If the price continues, there is a possibility that we will test the $ 40,000 level again.

Bullish scenario:

We need the continuation of the current positive consolidation, and with the support of MA20, we hope that the price will rise to the $ 40,000 level.

The MA50 and MA200 moving averages are our potential resistance at $ 41,000.

Then the next resistance is at $ 42,000, and our next zone is $ 44,000-46,000.

Bearish scenario:

We need continued bearish consolidation and a price hike to previous support at $ 38,000.

A break below this support would lower us further down to the $ 35,000-36,000 support zone.

Additional support at that level is our lower trend line.

A fall in the price below the trend line of support could form a new low this year.


Market overview

With inflation at historically high levels, it would be expected that this is the moment for bitcoin to shine, but the opposite happened. The price of Bitcoin is retreating like all world stock markets. The key investment case for bitcoin has worsened recently, as geopolitical uncertainty and rising inflation “hit” cryptocurrency prices.

The price of bitcoin thus fell last week, to its lowest level in two weeks, after Russian President Vladimir Putin ordered troops in Donetsk and Luhansk, two breakaway regions in eastern Ukraine, shortly after declaring them independent.

Bitcoin is often called “digital gold” by its supporters. The term refers to the idea that the most popular cryptocurrency can provide a storehouse of value similar to gold – one that is not correlated with other financial markets, such as stocks. In contrast, bitcoin behaves the same as company stocks.

Bitcoin’s “bulls” also see cryptocurrency as a “safe haven” that can serve as protection against global economic uncertainty and rising prices, which reduces the purchasing power of sovereign currencies such as the US dollar.

With inflation at historically high levels, it would be expected that this is the moment for bitcoin to shine – consumer prices in the US last month rose the most since February 1982, according to the Ministry of Labor. But instead, the most famous cryptocurrency has lost almost half of its value in the past period since it reached the highest level of almost 69,000 dollars in November.

This has led analysts to question whether bitcoin can indeed have the status of some form of “digital gold”. It is considered that he is still in the early phase of his maturity to be firmly placed in that category.

The volume of cryptocurrency trading in Russia jumped in the last two weeks of February, especially after the US sanctions, according to data provider Kaiko. This has sparked some speculation that the Russians have turned to crypto to protect their wealth, especially given the growing popularity of stablecoin tethers.

Unlike the sanctions of the large payment services Visa and Mastercard, most of the large crypto exchanges are still active in Russia. Recently, Coinbase CEO Brian Armstrong said that many Russians use cryptocurrencies as a lifeline due to the volatility of the ruble and limited access to foreign markets. Armstrong also said there is little risk of Russia using cryptocurrencies to evade sanctions, a major concern for Western lawmakers.




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