Bitcoin’s downward slide continued Monday to the accompaniment of drumming war between Russia and Ukraine. This digital currency lost critical support at $40,000 and fell to $37,000 on Monday. TradingView data shows that the crypto currency, which closed at close to $38,000, is still swinging about the above crucial support and may continue to lose more.
Bitcoin’s price has dropped for six days in a row. Late last night, the pioneer fell to $36,545 — its lowest level in two weeks. This figure is about 45 percent below the November all-time peak.
BTC/USD trades start at $37k TradingView
Extreme Fear Shifts Sentiment
On the other side, experts have become pessimistic since the digital currency plummeted sharply after it failed to surpass the $45,000 resistance barrier. Most anticipate that the $30,000 mark will be reintroduced.
It’s understandable that investors are concerned, given how crypto values have fluctuated in recent months. The Federal Reserve’s decision to scale back on pandemic-related economic stimulus measures, as well as mining difficulties in Kazakhstan, initially weighed on prices. But most cryptos are struggling to gain any momentum.
Bitcoin Fear and Greed Index.
It is an indicator of investor sentiment. The index considers many indicators such as volatility, trade volume, social media activity and social media activity. In November when the market was at its highest prices, it scored 84, which puts it into severe greed territory.
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Bloomberg Analyst Optimistic
Mike McGlone from Bloomberg is an experienced commodity strategist. He has an exciting prediction for Bitcoin. McGlone already stated on Sunday February 20 that Bitcoin might face severe headwinds. He goes on to say that inflation won’t go down unless risk assets fall, which hasn’t happened yet.
McGlone is optimistic that Bitcoin will become a major trend despite the dire short-term outlook. McGlone also stated that a majority of assets will respond to the “ebbing tide” in 2020, as the Fed’s financial tighten policies.
McGlone however predicts that Bitcoin will hit a major milestone in 2022, even as inflation continues to tighten its grip. Last Sunday, the Bloomberg analyst wrote on Twitter, ”
Bitcoin indicating a rough week ahead – Inflation Unlikely to Drop Unless Risk Assets Do: The ebbing tide will affect most assets in 2022 on the inevitability of inflation’s greatest reversion in 40 years. However, this year could be a milestone for Bitcoin.
#Bitcoin indicating a rough week ahead – Inflation Unlikely to Drop Unless Risk Assets Do:
Most assets are subject to the ebbing tide in 2022, on the inevitable reversion of the greatest inflation measures in four decades, but this year may mark another milestone for Bitcoin. pic.twitter.com/drnXyYea4F— Mike McGlone (@mikemcglone11) February 20, 2022
McGlone has previously stated that Bitcoin is showing divergent strength compared to equities. BTC is expected to reach $100,000 in 2022, according to Bloomberg’s Crypto Market Outlook for February. McGlone is positive on Ethereum (ETH) and stablecoins, commonly known as “crypto dollars,” in addition to Bitcoin.
Bitcoin’s price predictions have been inconsistent and measured. Analysts are encouraging investors to buy the Bitcoin drop, in hopes of the first cryptocurrency reaching $100,000 by the end of the year. Many others anticipate a cryptocurrency winter in which the price will plummet to zero.
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Featured Image from Unsplash. Chart by TradingView.com